California Software Co. Ltd. (CALSOFT) AI Stock Analysis

California Software Co. Ltd.

(NSE:CALSOFT)

Select Model

Rating:71.6Outperform

Price Target:INR 31.00▲(8.92% Upside)

Action:reiterated

Date:10/25/26

The company's outstanding financial performance and strong balance sheet are the primary drivers of the score, reflecting a fundamentally robust business. However, the stock is under significant technical pressure, trading below key moving averages with deeply oversold momentum indicators, which presents a major headwind. The attractive P/E ratio provides some support, but the current bearish technical trend heavily offsets the strong fundamentals.

Positive Factors

Strong profitability and revenue growthThe latest period shows substantial revenue expansion alongside exceptionally strong gross and net margins. If the company can retain a meaningful portion of this performance, it should have greater capacity to reinvest in software services, support customers, and build earnings over the next several quarters.

Negative Factors

Weak operating cash conversionOperating cash flow materially below reported net income raises questions about how consistently profits convert into cash. Even with positive latest-period FCF, weak operating conversion can constrain internally funded growth and make future earnings less dependable as a source of liquidity.

California Software Co. Ltd. (CALSOFT) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.74B
Dividend Yield: ―
Average Volume (3M): 35.32K
Price to Earnings (P/E): 11.9
Beta (1Y): 0.63
Revenue Growth: 318.20%
EPS Growth: 1177.43%
Country: India
Employees: 45
Sector: General
Sector Strength: 55
Industry: Software - Application

California Software Co. Ltd. Business Overview & Revenue Model

Company Description

Established in Chennai, India, in 1992, California Software Company Limited delivers a comprehensive suite of services encompassing software development, IT infrastructure management, and business process outsourcing. The company specializes in craft...

California Software Co. Ltd. Financial Statement Overview

Summary

Exceptional financial health driven by 207.6% revenue growth, a 54.1% net profit margin, and a fortress balance sheet with a 0.04 debt-to-equity ratio. The score is tempered slightly by cash flow conversion being lower than net income.

Income Statement

92Very Positive

Balance Sheet

94Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	247.41M	196.58M	54.46M	42.80M	27.64M	108.57M
Gross Profit	206.93M	158.10M	24.40M	24.47M	17.58M	95.11M
EBITDA	202.22M	148.88M	15.65M	15.65M	11.96M	74.28M
Net Income	146.28M	106.26M	7.19M	6.24M	2.21M	45.52M
Balance Sheet
Total Assets	0	495.78M	273.92M	218.99M	250.67M	262.06M
Cash, Cash Equivalents and Short-Term Investments	60.15M	60.15M	20.49M	504.00K	528.00K	387.43K
Total Debt	0	16.12M	8.02M	83.14M	63.66M	48.97M
Total Liabilities	-412.74M	83.04M	28.61M	96.91M	134.88M	117.40M
Stockholders Equity	412.74M	412.74M	245.31M	122.08M	115.80M	164.81M
Cash Flow
Free Cash Flow	-16.80M	31.47M	0	-19.57M	-14.65M	-31.79M
Operating Cash Flow	-13.21M	35.07M	12.71M	-19.57M	-14.59M	-31.41M
Investing Cash Flow	-3.60M	-3.60M	0	0	-65.00K	-378.00K
Financing Cash Flow	-2.09M	8.10M	7.37M	19.48M	14.69M	31.97M

California Software Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price28.46

Price Trends

50DMA34.28Negative

100DMA28.38Positive

200DMA21.88Positive

Market Momentum

MACD-1.60Positive

RSI38.89Neutral

STOCH32.02Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CALSOFT, the sentiment is Negative. The current price of 28.46 is below the 20-day moving average (MA) of 31.76, below the 50-day MA of 34.28, and above the 200-day MA of 21.88, indicating a neutral trend. The MACD of -1.60 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 32.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CALSOFT.

California Software Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:CALSOFT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CALSOFT	72Outperform	INR 997.10M	11.91	―	―	318.20%	1177.43%
IN:KSOLVES	64Neutral	INR 4.75B	13.18	―	4.99%	10.91%	15.87%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:XTGLOBAL	53Neutral	INR 3.41B	30.42	―	0.40%	33.41%	8.12%
IN:CURAA	42Neutral	INR 624.69M	-38.49	―	―	428.09%	-7.91%
IN:RSSOFTWARE	41Neutral	INR 714.23M	-2.22	―	―	-34.37%	-222.71%
IN:SECURKLOUD	37Underperform	INR 512.52M	-2.59	―	―	-50.11%	87.17%

* General Sector Average

Performance Comparison

IN:CALSOFT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:CALSOFT	California Software Co. Ltd.	28.46	9.69	51.62%
IN:CURAA	Cura Technologies Limited	63.10	-133.55	-67.91%
IN:KSOLVES	Ksolves India Ltd	200.10	-107.52	-34.95%
IN:RSSOFTWARE	R. S. Software (India) Limited	27.65	-43.20	-60.97%
IN:SECURKLOUD	SecureKloud Technologies Limited	15.34	-4.96	-24.43%
IN:XTGLOBAL	XTGlobal Infotech Ltd.	25.40	-14.09	-35.68%

California Software Co. Ltd. Corporate Events

California Software Extends Deadline for Rights Issue Call Payment

Sep 26, 2026

California Software Company Limited has extended the payment deadline for the first and final call of ₹7.50 per partly paid-up equity share issued on a rights basis, originally allotted in February 2025. The new and final payment date is set fo...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 25, 2026

California Software Co. Ltd. AI Stock Analysis