Anka India Limited

Technology — Software - Application · BSE

₹20.84+₹1.07 (+5.41%)

DalalBaazaar Score

37 / 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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Anka India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Anka India Limited engages in the information technology and allied services business in India.

IndustrySoftware - Application

SectorTechnology

Employees3

Annual revenue₹18 Cr

How does it make money?

Turns over ₹18 Cr a year. Of every ₹100 of sales, about ₹-3 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹6.03 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.8%

Net margin-2.6%

Revenue / employee₹6.03 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.

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 0.3% 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.

ROCE0.3%

ROE-1.8%

Peer median ROE32.0%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

25/ 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

3.83x

EV/EBITDA

67.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 61% over 3 years.
Return on capital is rising
ROCE has improved from -2.1% to 0.3%.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 490% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 61% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

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
2 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 7%✓ 8.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 0.2x
How much operating profit can fall before interest stops being comfortably covered.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 0.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹107 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

3.83x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.08

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.8%

Weak

Weak capital efficiency

ROCE

0.3%

Weak

Low return on total capital employed

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

-53.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-27.7%

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

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹20.84

Operating Margin

3.2%

Weak

Thin margins leave little room for error

Net Margin

-2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.86

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

19.3 / 20.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹13 Cr	₹18 Cr	—
EBITDA	-₹0 Cr	₹0 Cr	₹1 Cr	₹2 Cr	—
EBITDA Margin	—	—	9.8%	8.8%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹-0.27	₹0.2	₹-0.24	₹-0.1	—
ROE	-2.1%	4.4%	-51.5%	-1.8%	—
ROCE	-2.1%	4.4%	-1.7%	0.3%	—
Total Debt	₹7 Cr	₹6 Cr	₹4 Cr	₹3 Cr	-27.0%
Free Cash Flow	-₹0 Cr	-₹0 Cr	₹1 Cr	-₹3 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹2 Cr.

🟡 EBITDA Margin has held roughly flat at 8.8% over 3 years.

🟡 ROE has held roughly flat at -1.8% over 3 years.

🟢 ROCE has risen from -2.1% to 0.3% over 3 years (+2.4 pts).

🟢 Total Debt has shrunk at 27.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹32 Cr

Total Liabilities

₹5 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.8%

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

Anka India Share Price Near 52-Week Low, Stock Analysis

Univest, 29 Sept

Anka India Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Anka India Limited Relocates Registered Office Within Gurugram Limits

scanx.trade, 07 Apr

Anka India Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 29 Sept

Anka India receives NCLT approval for Futech Internet amalgamation

scanx.trade, 01 Oct

SILVERLINE Stock Price and Chart — BSE:SILVERLINE

TradingView, 25 Feb

Watch Items

Revenue growth is negative (-53.1%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak6.2/20

🟡Financial HealthAdequate11.1/20

🟡GrowthModest10/20

🔴ProfitabilityWeak1.3/15

🔴ValuationDemanding5.1/15

🔴RiskHigh3.5/10

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

This thesis breaks if

✓EBITDA margin holds above 7%8.8%
✗Free cash flow remains positive-₹3 Cr
✗Interest cover stays above 3x0.2x
✓Debt / EBITDA stays below 2x1.7x
✗ROCE stays above 8%0.3%