Covance Softsol Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Covance Softsol Ltd trades at ₹201, in a confirmed uptrend and 74 weeks into that stage. That is +30.7% against its own 200-day average. It sits at 46% of a 52-week range of ₹147 to ₹263. On relative strength it has no relative-strength read yet.

Today the stock is in a confirmed uptrend — week 74 of stage 2, confirmed. At ₹201 it trades +30.7% versus its 200-day average and sits at 46% of its 52-week range (₹147–₹263).

Against the market, two honest reads. Cumulative: over the last 2 months the stock moved +17% while the NIFTY 500 moved +5% — ahead of the index over the full window. Recent form: no trailing-13-week read yet — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Covance Softsol Ltd trades at 12.9× P/E, mid-range by its own standards (38th percentile). Its long-run median P/E is 14.3×, measured across 1.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 12.9× is mid-range by its own standards (38th percentile), against a long-run median of 14.3× measured over 1.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Covance Softsol Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 6 quarters across 0 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

66.8/100 — rank 56 of 64 in IT - Software · 49% evidence confidence · provisional, ranked below fully-evidenced peers

Covance Softsol Ltd scores 66.8 out of 100 against the 64 companies it is compared with in IT - Software, ranking 56. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 25.8 + 17.8 + 11.1 + 12.1 = 66.8. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Covance Softsol Ltd reported ₹42.7 Cr of revenue in the Mar 26 quarter, +76.5% year on year. That is the 6th straight quarter of year-on-year growth. Over 2 years it has compounded at 54.7% a year. The last full year, FY26, came in at ₹146 Cr. The last four reported quarters add to ₹146 Cr.

FY26 revenue came in at ₹146 Cr (+43.1% on the year), capping 2 years at 54.7% compound. The latest quarter (Mar 26) printed ₹42.7 Cr, +76.5% year on year — the 6th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +48.1% growth against the decade's 54.7% — the current year is running slower than its own long-run rate.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Covance Softsol Ltd's operating margin is 23.1% in the Mar 26 quarter, +19.7 percentage points against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 1.5% to 29.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 23.1%, +19.7 pp against the same quarter a year ago. Across 3 fiscal years the operating margin has ranged 1.5%–29.0%.

Why the margin moved: operating margin went +19.7 pp year on year while gross margin went +0.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Covance Softsol Ltd earned ₹6.3 Cr of net profit in the Mar 26 quarter. Full-year FY26 profit was ₹34.0 Cr. The 2-year compound rate is 483.1%. That is 14.8% of the quarter's revenue. The same quarter a year earlier lost ₹1.9 Cr. 2 of the last 10 reported quarters were loss-making.

Mar 26 profit was ₹6.3 Cr, null year on year. On the full year, FY26 printed ₹34.0 Cr (+183.3%), and the 2-year compound rate is 483.1%.

Pace comparison, last four quarters: profit +444.6% vs revenue +48.1%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 26% of Covance Softsol Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹4.0 Cr of operating cash against ₹34.0 Cr of profit. After ₹1.0 Cr of capital spending, ₹3.0 Cr was left as free cash.

FY26: operating cash of ₹4.0 Cr against reported profit of ₹34.0 Cr, leaving free cash of ₹3.0 Cr after ₹1.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 26% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 26%: the cash cycle held roughly steady between FY24 and FY26 — so conversion tracks profitability rather than the cycle. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Covance Softsol Ltd's cash conversion cycle runs 87 days in FY26, up from 78 days in FY24. Capital spending ran ₹0.0 Cr over the last 2 years. At FY26 sales of ₹146 Cr each day of that cycle holds about ₹0.4 Cr, so roughly ₹35.0 Cr sits inside the business at any moment.

FY26: debtors at 87 days (an asset-light business — no inventory to speak of) — for a full cycle of 87 days, looser than FY24's 78.

In money terms: at FY26 sales of ₹146 Cr, each day of the cycle holds about ₹0.4 Cr — so the 87-day loop keeps roughly ₹35.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹0.0 Cr over the last 2 fiscal years. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Covance Softsol Ltd earns a ROCE of 31% in FY26. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 23.3% net margin on 0.52× asset turns.

FY26 ROCE is 31%.

Why the return is what it is — the wiring (FY26): 23.3% net margin × 0.52× asset turns × 1.66× balance-sheet leverage ≈ 20.1% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Covance Softsol Ltd carries ₹0.0 Cr of borrowings against ₹169 Cr of equity in FY26, a debt-to-equity of 0.00. Operating profit covers the interest bill 7×. Over 2 years borrowings went from ₹73.0 Cr to ₹0.0 Cr. Capital spending ran ₹0.0 Cr across the last 2 of those years.

FY26: borrowings of ₹0.0 Cr against equity of ₹169 Cr — a debt-to-equity of 0.00. Operating profit covers the interest bill 7×. Over 2 years borrowings went from ₹73.0 Cr to ₹0.0 Cr while capital spending ran ₹0.0 Cr in just the last 2 — the build-out is being paid for out of cash, not debt.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 1.8 points of Covance Softsol Ltd over 5 quarters, the biggest move on the register. That takes promoters to 71.7% of the company. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −1.8 points over 5 quarters to 71.7%.

🚨 Why the register moved: promoters drove it (−1.8 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Covance Softsol Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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