Suresofttech
The author is an analyst for NH Investment & Securities. He can be reached at esshim@nhqv.com -- Ed.
As a leader in mission-critical applications testing solutions, Suresofttech is benefiting from: 1) the growth of major client industries (auto, defense, nuclear); and 2) the addition of new client industries, amid the digitalization of shipbuilding, robotics, and medical services.
Leading developer of testing solutions for mission-critical apps
Software testing is essential to mission-critical applications, as it prevents software malfunctions that could go as far as costing human lives. Suresofttech is a leading developer of software testing solutions, offering a variety of solutions for multiple industries, including the auto, defense, and nuclear power industries. The firm also conducts testing services.
Addition of new industries to lead to sustained earnings growth
Software testing demand is steadily picking up as an increasing number of industries introduce new software, including the shipbuilding, railroad, robotics, healthcare, and finance industries. Having participated in software testing in the early days of the auto and nuclear industries, Suresofttech is forecast to play a critical role in the new downstream industries such as healthcare and robotics.
With sales expanding in the mid-10% range pa backed by accelerating digitalization, the firm has enjoyed operating leverage effects, along with a continued rise in OPM. In 2023, OPM is likely to inch down y-y on office relocation, increased hiring, and IPO costs. But, the company is predicted to keep posting record-setting earnings each year.