1. At a Glance
Compucom Software Ltd is that one stock which looks cheap on the surface, pays a dividend like a retired PSU uncle, trades below book value, and then quietly reminds you why markets are allergic to government receivables. With a market cap of ₹114 crore, a share price of ₹14.4, and a price-to-book of just 0.81, Compucom screams “deep value” — until you notice ROE of 1.05%, ROCE of 3.53%, and debtors stretching to 444 days.
Latest quarterly numbers (Q3 FY26) didn’t help sentiment either. Revenue came in at ₹8.96 crore, up 10.5% YoY, but PAT crashed 54.6% YoY to –₹0.24 crore. Yes, the quarter went negative, while the trailing twelve months still show PAT of ₹3.03 crore. This mismatch alone explains why the stock has fallen ~40% over one year and ~28% in six months.
And yet, promoters still hold 71.1%, there is zero pledge, dividend payout is a generous ~76%, and the company keeps winning Rajasthan government ICT contracts like it has a permanent Aadhaar card at the tender office. Curious? You should be.
2. Introduction
Compucom Software is not a startup story. It’s a 1995-born veteran that has survived dial-up internet, Y2K panic, and multiple government policy U-turns. Its core business is simple: run IT and education infrastructure projects for state governments, especially Rajasthan, get paid slowly, borrow meanwhile, and repeat the cycle with monk-level patience.
If you’re expecting SaaS margins or export-led IT growth, wrong door. If you’re expecting a company that understands how government tenders work, how to survive delayed payments, and how to squeeze returns out of low-margin contracts — welcome inside.
Over the years, Compucom has layered this core with e-governance projects, learning solutions, a now-exited wind power business, and lately, a surprising pivot into heritage
hotels and cold storage. Yes, from ICT labs to tourism and apples. Rajasthan diversification, literally.
The problem? Capital efficiency. Even in good years, ROE struggles to cross mid-single digits. Cash flows swing wildly. And whenever receivables pile up, debt balloons. So the market keeps asking: Is this a stable annuity business… or a working-capital trap?
3. Business Model – WTF Do They Even Do?
Think of Compucom as a backend IT contractor for government classrooms. The company bids for tenders floated by state governments (mainly Rajasthan), installs computers, servers, networking, UPS, software, trains teachers and students, and then maintains everything for 3–5 years.
Key Segments
1. Learning Solutions (74% of FY23 revenue)
This is the bread and butter. Projects like ICT Phase IV & V, 303 schools, 1172 schools, RCSE projects, etc. Hardware + software + maintenance + training, bundled into one long contract. Margins look decent on paper, but cash collection tests your spirituality.
2. Software & E-Governance (16%)
Projects like RISL, BOCW, LDMS, e-Vault systems. Lower scale but relatively better intellectual content. Still government, still slow payments.
3. Wind Power (3%) — now exited
The company had 3.2 MW of wind capacity, fully outsourced for O&M. In April
