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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
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The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
The BSE, founded in 1875, is Asia's oldest stock exchange — it started under a banyan tree on Dalal Street, where the bronze bull stands today.
Sigma Advanced Systems Limited, formerly Megasoft Limited, is an India-based manufacturer and service provider of defense systems and security solutions. The Company specializes in the design, development, and production of defense and aerospace solutions. Its portfolio…
Weekly engine runs — movement reflects the numbers, not analyst opinion.
A middling, fast-growing business, priced for perfection — but flagged on governance.
SIGMA ADVANCED SYSTEM LTD is scored on the it / services framework. It keeps a fat 33.7% of every rupee of sales as net profit. Cash conversion lags the reported profit (CFO/PAT -0.79×) — worth a closer look. Free cash flow is worth about 0.4% of its market value.
Over the last 3 years revenue compounded at 162%/yr and profit at 186%/yr. Book value itself has compounded 34%/yr — the hallmark of a genuine compounder. Return on equity is an elite 57.2%. In the latest quarter profit fell 70% versus the prior quarter.
At 60× earnings, the stock sits at the 88th percentile of its own 1.6-year range — the expensive end of where it has historically traded. Today's price already implies ~32%/yr earnings growth sustained for a decade — a demanding bar. The forensic screen raises 3 red flags: Only ₹-0.49 of cash per ₹1 profit over 4 years — earnings not converting to cash; 98% of pre-tax profit is other income, not operations; Share count up 86% over 4 years — heavy equity dilution.
A plain-English restatement of the figures on this page — rules-based, for education and research context, not investment advice or a recommendation.
| Ratio | Company | Sector | Read |
|---|---|---|---|
| P/E | 103.37 | 58.63 | worse |
| P/B | 18.31 | 7.84 | worse |
| EV/EBITDA | 79.99 | 62.5 | worse |
| ROE | 57.22 | — | — |
| ROCE | 39.83 | 67.95 | worse |
| ROA | 15.73 | — | — |
| Quick Ratio | 0.99 | — | — |
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HAL | 35.7 | 8.1 | 22.2% |
| BEL | 45.1 | 11.0 | 24.4% |
| Solar Industries (india) | 72.0 | 21.9 | 29.5% |
162% CAGR over 3 years — high-growth territory. Growth is accelerating — latest year outpaced the prior year's rate.
Profit is growing faster than revenue (186% vs 162%) — margin expansion is at work. The latest year saw a +951% swing — check if it's a one-off or structural.
Operating margin has expanded from 26% to 38% — the business is keeping more of each rupee earned. The gap between operating and net margin is widening — interest or tax costs are rising. Margins have declined for 2 consecutive years — watch for a structural cost problem.
ROE at 57% — the business earns well above its cost of equity. ROE powered by fat margins — the hallmark of a high-quality franchise with pricing power. Capital efficiency improving — ROE up 51pp across the window.
EPS outpaced profit growth — possible buybacks are concentrating earnings into fewer shares. 1168% EPS CAGR — this is the rate at which each share's claim on earnings is compounding.
1 of 4 years had negative operating cash flow — profitability on paper may not translate to cash. Financing outflows in consecutive years — balance-sheet discipline through debt repayment or dividends.
When operating cash keeps pace with reported profit, earnings are cash-backed; a persistent shortfall is a quality flag.
Revenue fell 8% QoQ — could be seasonality or a genuine slowdown. Wide quarterly swings (95% spread) — likely seasonality, lumpy orders, or project-based revenue. Run-rate stepping up — recent quarters average 338% above earlier ones.
1 of 4 quarters loss-making — quarterly profitability is uneven. Profit fell 70% QoQ — one-quarter drops can be noise, but a pattern matters. Quarterly margins are compressing (15% → 10%) — more revenue isn't translating to proportionally more profit.
How today's P/E compares to the stock's own historical range. Dashed line = the 1.6y median.
Promoters hold 66.1% — heavily owner-operated with strong skin in the game. Promoters reduced 5.1pp over 4 quarters — watch whether this is planned divestment or pledge invocations. Both FII and MF added last quarter — broad institutional confidence.
Produced by a rules-based engine over licensed exchange fundamentals — every sentence above is derived from the numbers shown, no analyst or AI opinion involved. Education and research context, not investment advice. We are not SEBI-registered as an Investment Adviser or Research Analyst.