AccelerateBS India Limited

Technology — Information Technology Services · BSE

₹137.00₹0.00 (0.00%)

DalalBaazaar Score

58 / 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: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

AccelerateBS India Limited provides custom software development and consulting services.

IndustryInformation Technology Services

SectorTechnology

Employees47

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 47 employees supports ₹14.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹14.7 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.6% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +148% while net margin moved -32% 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+148%

Margin effect-32%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.28 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

39/ 100

Expensive

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

72.9x

3Y Median

206.0x

40 monthly readings · mean 578.7x · range 27.4x–3360.0x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 65% below its 3y median of 206.0x. 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 340% above the peer median of 16.5x.

vs. its own history

Cheap

206.0x median over 40 months · -65%

vs. sector peers

Expensive

16.5x median of 4 peers · +340%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

36.5x

PEG

3.89

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.75x — earnings must service borrowings before shareholders see anything.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 506.7x to 5.0x.
🟡Margins are compressingFinancial
EBITDA margin is down 5.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 65% 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 26.7% to 21.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 7.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 340% above the peer median. That premium needs a reason that persists, or it closes.
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.

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

1Revenue growth stays above 26% a year✓ 35.3% CAGR
Latest reported year was 0.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 10.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

2 good · 4 neutral · 5 weak

Market Cap

₹47 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

72.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.76x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.88

Profitable

Profitable on a per-share basis

ROE

15.4%

Strong

Strong capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.75x

High

High leverage

Revenue Growth (YoY)

0.6%

Modest

Modest growth

Profit Growth (YoY)

-11.9%

Falling

Profits are shrinking

Dividend Yield

0.15%

Modest

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

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

7.2%

Average

Average asset productivity

Operating Margin

6.3%

Average

Average margins

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

2.11

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.28

Defensive

Steadier than the market

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

137.0 / 118.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (5-Year)

Metric	FY22	FY23	FY24	FY25	FY26	3Y CAGR	4Y CAGR
Revenue	—	₹3 Cr	₹7 Cr	₹7 Cr	₹7 Cr	+35.3%	+35.3%
EBITDA	—	₹1 Cr	₹2 Cr	₹1 Cr	₹2 Cr	+26.3%	+26.3%
EBITDA Margin	—	26.7%	28.5%	18.5%	21.8%	—	—
PAT (Net Profit)	—	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+18.8%	+18.8%
EPS	₹0.75	₹1.12	₹0.09	₹2.57	—	—	—
ROE	—	—	0.8%	16.8%	16.1%	—	—
ROCE	—	—	18.3%	17.2%	10.6%	—	—
Total Debt	₹0 Cr	—	₹1 Cr	₹2 Cr	₹10 Cr	—	+119.4%
Free Cash Flow	—	-₹1 Cr	-₹1 Cr	₹0 Cr	₹0 Cr	—	—

🟢 Revenue has grown at 35.3% a year over 3 years.

🟢 EBITDA has grown at 26.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 26.7% to 21.8% over 3 years (-5.0 pts).

🟢 PAT (Net Profit) has grown at 18.8% a year over 3 years.

🟢 ROE has risen from 0.8% to 16.1% over 3 years (+15.3 pts).

🔴 ROCE has fallen from 18.3% to 10.6% over 3 years (-7.7 pts).

🔴 Total Debt has grown at 119.4% a year over 4 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17 Cr

Total Liabilities

₹13 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.3%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

20 Jul 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

2 positive4 general

Compare with

Equitymaster, 13 Oct

AccelerateBS India Ltd Share Price

Business Today, 17 Sept

AccelerateBS India Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

AccelerateBS India reports ₹3.9 crore revenue in Apr-Jun 2026

scanx.trade, 08 Jul

AccelerateBS India approves ₹0.10 dividend, reappoints director

scanx.trade, 13 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

NESCO, Graphite India, SPR Auto, Happy Forgings, K.P.R. Mill Dividend Record Date: Last Day To Buy Shares To Qualify

NDTV Profit, 17 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Growth

WeakValuation · Risk

Points for each in the Score ↑

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.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑