Saven Technologies Limited

Technology — Information Technology Services · BSE

₹34.20−₹0.02 (−0.06%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. 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

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Saven Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Saven Technologies Limited, a technology consulting company, provides software services in the United States of America and India.

IndustryInformation Technology Services

SectorTechnology

Employees87

Annual revenue₹19 Cr

How does it make money?

Turns over ₹19 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 87 employees supports ₹21.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin17.4%

Net margin18.1%

Revenue / employee₹21.7 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 14.4% 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.

ROCE14.4%

ROE15.8%

Peer median ROE32.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +26% while net margin moved -27% 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+26%

Margin effect-27%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.9% — barely ahead of inflation
✗ Profit has declined at 2.8% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 44.8% in the latest year

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

73/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

13.3x

3Y Median

18.2x

40 monthly readings · mean 17.6x · range 10.7x–25.1x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 3y median of 18.2x. 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% below the peer median of 16.5x.

vs. its own history

Cheap

18.2x median over 40 months · -27%

vs. sector peers

Fair

16.5x median of 4 peers · -20%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

13.3x

P/B

1.73x

EV/EBITDA

10.1x

PEG

—

Dividend Yield

4.39%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 13.3x the stock trades 27% below its own median of 18.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 30.8% to 17.4% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 20.9% to 15.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.8% to 14.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 13.4 points, from 30.8% to 17.4%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹5 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 27% 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.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 30.8% to 17.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 7.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 20.9% to 15.8%. 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.
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.

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

1EBITDA margin holds above 15%✓ 17.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 6% a year✓ 7.9% CAGR
Latest reported year was 7.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4ROCE stays above 11%✓ 14.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 18.2x✓ 13.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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 · 5 neutral · 2 weak

Market Cap

₹37 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.3x

Cheap

Cheap against the generic band

P/B Ratio

1.73x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.57

Profitable

Profitable on a per-share basis

ROE

15.8%

Strong

Strong capital efficiency

ROCE

14.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

7.5%

Modest

Modest growth

Profit Growth (YoY)

-44.8%

Falling

Profits are shrinking

Dividend Yield

4.39%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹34.2

Operating Margin

18.8%

Good

Healthy core-business profitability

Net Margin

14.6%

Good

Strong bottom-line conversion

Current Ratio

6.05

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

33.8 / 33.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹13 Cr	₹14 Cr	₹19 Cr	+7.9%
EBITDA	₹5 Cr	₹4 Cr	₹3 Cr	₹3 Cr	-10.8%
EBITDA Margin	30.8%	27.0%	21.4%	17.4%	—
PAT (Net Profit)	₹4 Cr	₹2 Cr	₹3 Cr	₹3 Cr	-2.8%
EPS	₹3.43	₹2.29	₹2.38	₹3.14	-2.9%
ROE	20.9%	13.5%	12.9%	15.8%	—
ROCE	24.8%	18.0%	14.1%	14.4%	—
Free Cash Flow	₹4 Cr	₹2 Cr	-₹0 Cr	-₹5 Cr	—

🟢 Revenue has grown at 7.9% a year over 3 years.

🔴 EBITDA has shrunk at 10.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 30.8% to 17.4% over 3 years (-13.4 pts).

🔴 PAT (Net Profit) has shrunk at 2.8% a year over 3 years.

🔴 EPS has shrunk at 2.9% a year over 3 years.

🔴 ROE has fallen from 20.9% to 15.8% over 3 years (-5.1 pts).

🔴 ROCE has fallen from 24.8% to 14.4% over 3 years (-10.5 pts).

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹23 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.4%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

16 Feb 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

1 mixed2 negative3 general

Saven Technologies net profit falls 44% in Q1FY27 on income drop

scanx.trade, 30 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Saven Technologies standalone net profit declines 44.85% in the June 2026 quarter

Business Standard, 30 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Compare with SAVEN TECHNO

Equitymaster, 08 Oct

Saven Technologies Schedules Board Meeting on May 22, 2026 to Approve Q4 and Full Year FY26 Financial Results

scanx.trade, 22 MayResults

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

VEDAVAAG Stock Price and Chart — NSE:VEDAVAAG

TradingView, 18 Aug

SAVEN TECHNOLOGIES LTD. Share Price

Upstox, 21 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟡Financial HealthAdequate10.8/20

🔴GrowthWeak5.7/20

🟡ProfitabilityModerate9.5/15

🟢ValuationAttractive11.8/15

🟡RiskModerate5.4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 15%17.4%
✗Free cash flow remains positive-₹5 Cr
✓Revenue growth stays above 6% a year7.9% CAGR
✓ROCE stays above 11%14.4%
✓Valuation vs its own median of 18.2x13.3x today