SoftTech Engineers Ltd, incorporated in 1996 and founded by Vijay Shantiswarup Gupta, stands as a pioneering force in India's architecture, engineering, and construction (AEC) software domain. Initially established as a Private Limited company in Ahmedabad, Gujarat, it was later converted into a public limited company in 2018, with its headquarters now located in Pune, India.
SoftTech Engineers operates in the specialized business of design, development, installation, and servicing of information technology resources specifically tailored for the AEC industry. The company develops comprehensive software solutions and intellectual property that cater to the entire lifecycle of construction projects, spanning from initial planning and layout design to approval processes, budgeting, area calculations, and plan execution.
SoftTech Engineers has established itself as the undisputed leader in its domain, commanding an impressive 80% market share in India. This dominant position reflects the company's deep understanding of the local construction industry requirements and its ability to deliver specialized solutions that address the unique challenges faced by Indian construction professionals and government authorities.
The company's flagship products include autoDCR, PWIMS, and OPTICON, which represent comprehensive AEC software solutions for civil/structural engineering, architectural, and construction industry-specific applications. Among its initial offerings were STRUDS and ESRGSR, both designed for Structural Analysis and Designing, followed by the launch of PWIMS and AutoDCR. AutoDCR is particularly utilized by government authorities for building permit automation in CAD-based building plans.
To enhance Ease of Doing Business, SoftTech is actively collaborating with government authorities to provide Smart City Solutions. The company develops innovative e-governance and construction ERP solutions for smart city projects and various government bodies, incorporating 2D and 3D CAD tools enhanced with machine learning technology to reduce human intervention. Additionally, they offer Cloud Technology-enabled products delivered as Software as a Service (SaaS).
In 2014, SoftTech received significant validation through venture capital funding from Rajasthan Venture Capital Fund and established strategic business alliances with industry giants Microsoft and Autodesk. The company maintains high operational standards, being certified ISO 9001:2008 and ISO 9001:2015 for software products and IT solutions.
As of the latest available data, SoftTech Engineers maintains a market capitalization of ₹537 crores, representing a 6.36% increase over the past year. The company reported annual revenue of ₹95.2 crores and profit of ₹1.33 crores.
Recent quarterly performance shows mixed results:
- Q4 FY25 (March 2025): Achieved its highest quarterly net sales in five quarters at ₹31.00 crores, reflecting a robust year-on-year growth of 38.64%.
- Q2 FY25: Net profit declined by 56.19% year-on-year to ₹0.46 crores, with a quarterly decline of 28.13%.
- Trailing Twelve Months (TTM) Revenue: As of December 31, 2024, revenue stood at approximately $10.4 million.
Key financial metrics include:
- Stock P/E Ratio: 407 (alternative source indicates 171.11)
- Book Value: ₹122
- PB Ratio: 3.42
- EBITDA: ₹225.10 million with a margin of 28.25%
- Employee Strength: 352 as of December 27, 2024
The stock has experienced significant volatility:
- All-Time High: ₹612.05 (December 12, 2024)
- All-Time Low: ₹84.65 (July 4, 2022)
- 52-Week Trading Range: ₹277.45 to ₹607.85
- Past Year Return: 112.83% increase
- Last Three Years Return: 220.49% surge
The stock exhibits moderate volatility with a 4.19% volatility rate and a beta coefficient of 1.34, indicating higher sensitivity to market movements compared to the broader market.
- Promoter Holding: 18.89% (as of February 2025), showing a decline from 20.34% in September 2024.
- Leadership: The company is led by its founder and Chairman Vijay Gupta, with Shalaka Khandelwal serving as Company Secretary.
- Management: The experienced management team has been instrumental in driving the company's success and profitability in the specialized AEC software industry.
While the company has shown strong revenue growth, operational challenges persist with declining profit margins and operational efficiency. The profit after tax reached its lowest point in five quarters, and the company's significant reliance on non-operating income raises concerns about business model sustainability. Additional operational concerns include a low interest coverage ratio, low return on equity (ROE) of 2.27% over the last three years, and high debtors of 167 days.
Despite these challenges, the company maintains its position as a non-dividend paying entity, focusing resources on business expansion and technology development rather than shareholder distributions. The company's strong market position, comprehensive product portfolio, and strategic focus on government digitization initiatives position it well for long-term growth in India's expanding construction technology sector.
