3C IT Solutions & Telecoms (India) Limited

Technology — Information Technology Services · BSE

₹19.00₹0.00 (0.00%)

DalalBaazaar Score

40 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of 3C IT Solutions & Telecoms (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

3C IT Solutions & Telecoms (India) Limited retails laptops, accessories, related products, and other networking components in India.

IndustryInformation Technology Services

SectorTechnology

Employees35

Annual revenue₹58 Cr

How does it make money?

Turns over ₹58 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 35 employees supports ₹1.65 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.65 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 5.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -2% while net margin moved -48% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-2%

Margin effect-48%

DalalBaazaar Score

40/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.7% a year
✗ Profit has declined at 20.3% a year

Quality vs. Valuation

Company Quality

33/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

19.8x

3Y Median

96.9x

30 monthly readings · mean 103.2x · range 20.9x–171.5x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 80% below its 3y median of 96.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 20% above the peer median of 16.5x.

vs. its own history

Cheap

96.9x median over 30 months · -80%

vs. sector peers

Fair

16.5x median of 4 peers · +20%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 97% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 27.7% to 4.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.8% to 5.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 3.14x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 222% against revenue up -2% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹0 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 49% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 97% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 80% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 6.9% to 2.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.14x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 222% against revenue up -2%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 27.7% to 4.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 0%✓ 2.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 5.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 7.8x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.86x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.96

Profitable

Profitable on a per-share basis

ROE

4.4%

Weak

Weak capital efficiency

ROCE

5.0%

Weak

Low return on total capital employed

Debt/Equity

3.14x

High

High leverage

Revenue Growth (YoY)

186.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

301.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

1.2%

Weak

Assets generate little profit

Operating Margin

1.0%

Weak

Thin margins leave little room for error

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.83

Market-like

Moves roughly in line with the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

16.5 / 16.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.5

Neutral momentum

Financial Trend (5-Year)

Metric	FY22	FY23	FY24	FY25	FY26	3Y CAGR	4Y CAGR
Revenue	—	₹59 Cr	₹30 Cr	₹36 Cr	₹58 Cr	-0.7%	-0.7%
EBITDA	—	₹4 Cr	₹3 Cr	₹1 Cr	₹1 Cr	-31.5%	-31.5%
EBITDA Margin	—	6.9%	8.7%	3.0%	2.3%	—	—
PAT (Net Profit)	—	₹1 Cr	₹0 Cr	-₹0 Cr	₹1 Cr	-20.3%	-20.3%
EPS	₹1.84	₹1.89	₹0.21	₹-0.09	—	—	—
ROE	—	27.7%	—	-0.4%	4.3%	—	—
ROCE	—	25.8%	—	4.6%	5.0%	—	—
Total Debt	₹10 Cr	₹13 Cr	—	₹1 Cr	₹0 Cr	-68.5%	-55.2%
Free Cash Flow	—	-₹3 Cr	₹10 Cr	-₹3 Cr	-₹0 Cr	—	—

🟡 Revenue has been broadly flat over 3 years (-0.7% a year).

🔴 EBITDA has shrunk at 31.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 6.9% to 2.3% over 3 years (-4.7 pts).

🔴 PAT (Net Profit) has shrunk at 20.3% a year over 3 years.

🔴 ROE has fallen from 27.7% to 4.3% over 3 years (-23.4 pts).

🔴 ROCE has fallen from 25.8% to 5.0% over 3 years (-20.8 pts).

🟢 Total Debt has shrunk at 55.2% a year over 4 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹39 Cr

Total Liabilities

₹25 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.9%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

6 general

3C IT Solutions & Telecom (India) Ltd Peer Comparison – Compare with Others

Value Research, 01 Sept

3C IT Solutions AGM approves financials and director reappointments

scanx.trade, 04 Oct

3CITS and Cybernara Come Together to Build a Security-First Technology Business in India

Business Standard, 06 Apr

Compare with

Equitymaster, 29 Sept

3C IT Solutions & Telecoms Forms Strategic Alliance with Rudrarya International for Cybersecurity Services

scanx.trade, 30 Mar

JHS Svendgaard Retail Ventures Ltd. Share Price: 16.13% Gain

Univest, 27 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑