Ksolves – a newage software development firm

I too calculated approx similar figures. (Just back of the envelop calculations)

By 2026,
Rev =400 cr
NPM = 30 % (current NPM =33%)
PE = 30 **
Mcap 3600
current Mcap = 500
exp return from here – 7X

**(although if they achieve this growth there is a chance of stock rerating cause

Look at their past executions –

→ Compounded Sales Growth
5 Years: 93%
3 Years: 103%
TTM: 77%

→ Compounded Profit Growth
5 Years: 277%
3 Years: 357%
TTM: 51%

→ Return on Equity
5 Years: 110%
3 Years: 111%
Last Year: 106%

And future looks promising too –

→ ksolves is odo partner & their dashboard ninja is a superhit product. They are silver partner for salesforce…I feel salesforce itself is a huge opportunity size…look at infobeans- salesforce gold

→ Also it is transitioning from old technologies to new technologies/offerings such as Big Data, AI/ML, Blockchain, Cloud, Edge computing, IOT, SaaS/PaaS/IaaS, RPA, BPM etc

→ Management –

• Did make mistake of selling in open market just before mainboard listing…could have brought a strategic investor instead
• But they are very quick to explain it openly with regular filling to exchanges & shareholders…also management is very active on social media.
• They were among very few who used to declare results on every quarter even when it was a SME stock

So in my view

• Management has good execution skill which is visible by their excellent past performance
• They have set very ambitious goal (10X topline in 4 years)
• Made a mistake like all management does but openly communicated the reason
  (but important point is there is no corporate governance issue yet)
• Stock is in consolidation mode may be because of past run , recent management selling & current negative global sentiments for all Tech/IT stocks

Disc : Invested