AGS Transact Technologies Limited

Technology — Software - Infrastructure · BSE

₹2.25−₹0.04 (−1.75%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. 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 AGS Transact Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

AGS Transact Technologies Limited, together with its subsidiaries, provides integrated omni-channel payment solutions. It operates through three segments: Payment Solutions, Banking Automation Solutions, and Other Automation Solutions.

IndustrySoftware - Infrastructure

SectorTechnology

Employees1,106

Annual revenue₹1,471 Cr

How does it make money?

Turns over ₹1,471 Cr a year. Of every ₹100 of sales, about ₹-5 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 1,106 employees supports ₹1.33 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.33 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 0.1% 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?

Sales and margins have both contributed to where profit is now. Over 2 years revenue moved -17% while net margin moved +17% 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-17%

Margin effect+17%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

54/ 100

Fair

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

EV/EBITDA

5.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash generation is improving
Free cash flow is up 25% over 2 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 14.0% to 0.1% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.00x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹80 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.9 points, from 23.4% to 13.5%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.4x to 0.0x.
🟡Inventory building faster than salesFinancial
Inventory up 35% against revenue up -17% — stock may not be moving.

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 23.4% to 13.5%. 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 5.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
4 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 11%✓ 13.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.0x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹297 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 0.1%
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 · 2 neutral · 7 weak

Market Cap

₹29 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

0.05x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-12.22

Loss-making

Negative earnings per share — the business is losing money

ROE

-17.3%

Weak

Weak capital efficiency

ROCE

0.1%

Weak

Low return on total capital employed

Debt/Equity

2.00x

High

High leverage

Revenue Growth (YoY)

-43.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-316.7%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹297 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-104.0%

Weak

Thin margins leave little room for error

Net Margin

-13.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.10

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.3 / 2.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.1

Neutral momentum

Financial Trend (3-Year)

Metric	FY22	FY23	FY24	2Y CAGR
Revenue	₹1,772 Cr	₹1,671 Cr	₹1,471 Cr	-8.9%
EBITDA	₹414 Cr	₹417 Cr	₹198 Cr	-30.8%
EBITDA Margin	23.4%	24.9%	13.5%	—
PAT (Net Profit)	-₹82 Cr	₹37 Cr	-₹80 Cr	—
EPS	₹-6.93	₹3.01	₹-6.64	—
ROE	-17.1%	6.9%	-17.3%	—
ROCE	14.0%	14.2%	0.1%	—
Total Debt	₹1,104 Cr	₹1,231 Cr	₹1,120 Cr	+0.7%
Free Cash Flow	₹238 Cr	₹140 Cr	₹297 Cr	+11.8%

🔴 Revenue has shrunk at 8.9% a year over 2 years.

🔴 EBITDA has shrunk at 30.8% a year over 2 years.

🔴 EBITDA Margin has fallen from 23.4% to 13.5% over 2 years (-9.9 pts).

🟡 ROE has held roughly flat at -17.3% over 2 years.

🔴 ROCE has fallen from 14.0% to 0.1% over 2 years (-13.9 pts).

🟡 Total Debt has been broadly flat over 2 years (0.7% a year).

🟢 Free Cash Flow has grown at 11.8% a year over 2 years.

Balance Sheet & Cash Flow — FY2024

Total Assets

₹2,091 Cr

Total Liabilities

₹1,630 Cr

Cash & Equivalents

₹34 Cr

Operating Cash Flow

₹349 Cr

Capex

-₹52 Cr

Shareholding (proxy)

Institutional Holding

3.6%

Insider Holding

27.6%

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

AGS Transact Technologies Share Price Forecast to 2030

Univest, 14 Jul

AGS Transact Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

AGS Transact Technologies Share Price: Buy or Sell

Univest, 04 Sept

AGS Transact promoters confirm no share encumbrance in FY26

scanx.trade, 03 Jun

AGS Transact Technologies Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

AGS Transact Technologies Holds 11th Committee of Creditors Meeting Under CIRP

scanx.trade, 13 Apr

Watch Items

Revenue growth is negative (-43.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑