Sigma Solve 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.

Sigma Solve Ltd trades at ₹48.6, in a downtrend and 23 weeks into that stage. That is +12.3% against its own 200-day average. It sits at 64% of a 52-week range of ₹37 to ₹55. On relative strength it has no relative-strength read yet.

Today the stock is in a downtrend — week 23 of stage 4, confirmed. At ₹48.6 it trades +12.3% versus its 200-day average and sits at 64% of its 52-week range (₹37–₹55).

Against the market, two honest reads. Cumulative: over the last 1 months the stock moved +27% while the NIFTY 500 moved +1% — 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.

Sigma Solve Ltd trades at 16.0× P/E, near the bottom of its own range — cheaper only 13% of the time. Its long-run median P/E is 25.4×, measured across 5.8 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 16.0× is near the bottom of its own range — cheaper only 13% of the time, against a long-run median of 25.4× measured over 5.8 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 low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Improving 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).

Sigma Solve Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 7 quarters ago at −20.0% and has held its recovery at +160.0% (single-quarter readings), ROCE slipping at 48.0%. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

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.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

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

Sigma Solve Ltd reported ₹23.0 Cr of revenue in the Jun 26 quarter, +9.5% year on year. That is the 8th straight quarter of year-on-year growth. Over 6 years it has compounded at 45.8% a year. The last full year, FY26, came in at ₹96.0 Cr. The last four reported quarters add to ₹99.0 Cr.

FY26 revenue came in at ₹96.0 Cr (+26.3% on the year), capping 6 years at 45.8% compound. The latest quarter (Jun 26) printed ₹23.0 Cr, +9.5% year on year — the 8th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +22.9% growth against the decade's 45.8% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +20.7% over the last 4 quarters against +24.4%/yr over the last 8 — rolling over; TTM profit +60.0% vs +33.3%/yr — accelerating.

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.

Sigma Solve Ltd's operating margin is 34.0% in the Jun 26 quarter, +10.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 18.0% to 41.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 34.0%, +10.0 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 18.0%–41.0%.

Why the margin moved: operating margin went +9.6 pp year on year while gross margin went −2.6 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.

Sigma Solve Ltd earned ₹13.0 Cr of net profit in the Jun 26 quarter, +160.0% year on year. Full-year FY26 profit was ₹24.0 Cr. The 6-year compound rate is 51.3%. That is 56.5% of the quarter's revenue. The same quarter a year earlier earned ₹5.0 Cr.

Jun 26 profit was ₹13.0 Cr, +160.0% year on year. On the full year, FY26 printed ₹24.0 Cr (+26.3%), and the 6-year compound rate is 51.3%.

Why profit moved: revenue contributed +9.5% and the margin +10.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +70.3% vs revenue +22.9%. 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 89% of Sigma Solve Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹30.0 Cr of operating cash against ₹24.0 Cr of profit. After ₹0.0 Cr of capital spending, ₹30.0 Cr was left as free cash.

FY26: operating cash of ₹30.0 Cr against reported profit of ₹24.0 Cr, leaving free cash of ₹30.0 Cr after ₹0.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 89% 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 89%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

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).

Sigma Solve Ltd's cash conversion cycle runs 70 days in FY26, up from 62 days in FY21. Capital spending ran ₹1.0 Cr over the last 3 years. At FY26 sales of ₹96.0 Cr each day of that cycle holds about ₹0.3 Cr, so roughly ₹18.0 Cr sits inside the business at any moment.

FY26: debtors at 70 days, inventory at 0 days — roughly 0.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 70 days, looser than FY21's 62.

In money terms: at FY26 sales of ₹96.0 Cr, each day of the cycle holds about ₹0.3 Cr — so the 70-day loop keeps roughly ₹18.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1.0 Cr over the last 3 fiscal years against ₹3.0 Cr of depreciation — spending at or below maintenance level. 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.

Sigma Solve Ltd earns a ROCE of 48% in FY26. That is up from a trough of 44% in FY21. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 25.0% net margin on 1.08× asset turns.

FY26 ROCE is 48%, recovered from a FY21 trough of 44% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 25.0% net margin × 1.08× asset turns × 1.16× balance-sheet leverage ≈ 31.3% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

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.

Sigma Solve Ltd carries ₹2.0 Cr of borrowings against ₹77.0 Cr of equity in FY26, a debt-to-equity of 0.03. Over 5 years borrowings went from ₹1.0 Cr to ₹2.0 Cr. Capital spending ran ₹1.0 Cr across the last 3 of those years.

FY26: borrowings of ₹2.0 Cr against equity of ₹77.0 Cr — a debt-to-equity of 0.03. Over 5 years borrowings went from ₹1.0 Cr to ₹2.0 Cr while capital spending ran ₹1.0 Cr in just the last 3 — part of the build-out is riding on borrowed money.

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.

No holder of Sigma Solve Ltd moved a full percentage point over the last two years — the register is quiet. Foreign institutions moved +0.0 points over the same window, to 0.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +0.0 points over 8 quarters to 73.2%; Foreign institutions: +0.0 points over 8 quarters to 0.0%; Domestic institutions: +0.0 points over 8 quarters to 0.0%.

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.

Sigma Solve 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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