63 moons technologies limited

Technology — Software - Application · NSE

₹917.00−₹3.85 (−0.42%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of 63 moons technologies limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

63 moons technologies limited provides software solutions in India and internationally. It operates through Software Services/Solutions, Trading, and Others segments.

IndustrySoftware - Application

SectorTechnology

Employees414

Annual revenue₹212 Cr

How does it make money?

Turns over ₹212 Cr a year. Of every ₹100 of sales, about ₹-11 reaches shareholders as profit, with ₹-55 left at the operating level before interest, tax and depreciation. Each of its 414 employees supports ₹51.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-54.9%

Net margin-10.6%

Revenue / employee₹51.1 lakh

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.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of -1.0% 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.

ROCE-1.0%

ROE-0.6%

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 -27% while net margin moved +88% 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-27%

Margin effect+88%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

28/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

1.19x

EV/EBITDA

—

PEG

—

Dividend Yield

0.22%

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 27.8% to -54.9% over 3 years.
Debt is rising
Total debt is up 29% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 50% against revenue growth of -27% — customers are taking longer to pay.

Red Flags

7 items require attention · 5 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -25.2x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴The company is lossmakingFinancial
Net profit of -₹22 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 82.6 points, from 27.8% to -54.9%.
🔴Receivables growing faster than salesFinancial
Receivables up 50% against revenue up -27% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 29% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹336 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 27.8% to -54.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 50% against revenue up -27%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -57%✓ -54.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹336 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -25.2x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -1.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 2 neutral · 5 weak

Market Cap

₹4,225 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.19x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-14.13

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.6%

Weak

Weak capital efficiency

ROCE

-1.0%

Weak

Low return on total capital employed

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

350.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.22%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹336 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹917

Operating Margin

-59.0%

Weak

Thin margins leave little room for error

Net Margin

-20.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

11.28

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

840.5 / 831.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹290 Cr	₹369 Cr	₹47 Cr	₹212 Cr	-9.9%
EBITDA	₹80 Cr	₹225 Cr	-₹70 Cr	-₹116 Cr	—
EBITDA Margin	27.8%	61.1%	-149.5%	-54.9%	—
PAT (Net Profit)	-₹16 Cr	₹223 Cr	-₹33 Cr	-₹22 Cr	—
EPS	₹-3.54	₹48.29	₹-7.2	₹-4.87	—
ROE	-0.5%	6.6%	-1.0%	-0.6%	—
ROCE	0.6%	6.1%	-1.6%	-1.0%	—
Total Debt	₹4 Cr	₹5 Cr	₹3 Cr	₹5 Cr	+8.9%
Free Cash Flow	₹51 Cr	₹42 Cr	-₹154 Cr	-₹336 Cr	—

🔴 Revenue has shrunk at 9.9% a year over 3 years.

🔴 EBITDA has turned negative, from ₹80 Cr to -₹116 Cr.

🔴 EBITDA Margin has fallen from 27.8% to -54.9% over 3 years (-82.6 pts).

🟡 ROE has held roughly flat at -0.6% over 3 years.

🔴 ROCE has fallen from 0.6% to -1.0% over 3 years (-1.6 pts).

🔴 Total Debt has grown at 8.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹51 Cr to -₹336 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,887 Cr

Total Liabilities

₹237 Cr

Total Debt

₹5 Cr

Cash & Equivalents

₹67 Cr

Operating Cash Flow

-₹293 Cr

Capex

-₹43 Cr

Shareholding (proxy)

Institutional Holding

0.5%

Insider Holding

58.1%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

16 Sept 2026

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

4 mixed2 general

63 Moons Technologies subsidiary incorporates new digital asset firm

scanx.trade, 18 Oct

63 Moons Technologies Ltd. Share Price Rise Streak and

Univest, 13 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

63 Moons Tech shares surge 12% after subsidiary raises FY27 guidance

Business Standard, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

63 Moons Technologies shares rally 9% as subsidiary raises FY27 revenue guidance to Rs 600 crore

The Economic Times, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

63 Moons Technologies Q1 Results 2026 - Find 63 Moons Technologies Q1 Earnings Result | 63MOONS Q1 results

Livemint, 09 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

63 Moons Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak6.2/20

🟡Financial HealthAdequate10.9/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak1.3/15

🟡ValuationFair7.1/15

🔴RiskHigh4.1/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -57%-54.9%
✗Free cash flow remains positive-₹336 Cr
✗Interest cover stays above 3x-25.2x
✗ROCE stays above 8%-1.0%