Avio Smart Market Stack Limited

Technology — Information Technology Services · NSE

₹5.89+₹0.04 (+0.68%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 6:50 pm

Understanding the Business

Company site ↗

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

What does this company do?

Avio Smart Market Stack Limited provides barcoding solutions, Automatic Identification and Data Capture technologies in India and internationally.

IndustryInformation Technology Services

SectorTechnology

Employees158

Annual revenue₹104 Cr

How does it make money?

Turns over ₹104 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 158 employees supports ₹65.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹65.8 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 13.0% 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.

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 +98% while net margin moved -97% 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+98%

Margin effect-97%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROCE of 13.0% is adequate but not distinctive
✗ ROCE has fallen by 599.3 points — returns are eroding
✗ EBITDA margin of 5.5% is thin — little cushion if costs rise
✗ Net margin of 6.5% is slim
• Revenue has compounded at 25.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

47/ 100

Fair

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

28.0x

3Y Median

130.5x

40 monthly readings · mean 155.4x · range 3.0x–407.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 79% below its 3y median of 130.5x. 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 69% above the peer median of 16.5x.

vs. its own history

Cheap

130.5x median over 40 months · -79%

vs. sector peers

Expensive

16.5x median of 4 peers · +69%

vs. generic bands

Fair

15x–35x

EV/EBITDA

32.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 433.8% to 17.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 612.3% to 13.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 1044% against revenue up 98% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 95% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 79% 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?

Sales are being booked faster than collected
Receivables are up 1044% against revenue up 98%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 69% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 433.8% to 17.4%. 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.
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 19% a year✓ 25.5% CAGR
Latest reported year was 35.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 13.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹179 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.0x

Fair

Fairly valued against the generic band

P/B Ratio

5.13x

Rich

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

EPS (TTM)

₹0.21

Profitable

Profitable on a per-share basis

ROE

17.4%

Strong

Strong capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

35.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

400.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.3%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

1.07

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.1 / 6.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹53 Cr	₹49 Cr	₹40 Cr	₹104 Cr	+25.5%
EBITDA	₹3 Cr	₹1 Cr	₹0 Cr	₹6 Cr	+31.0%
EBITDA Margin	4.8%	2.9%	1.0%	5.5%	—
PAT (Net Profit)	₹110 Cr	₹1 Cr	₹2 Cr	₹6 Cr	-62.2%
EPS	₹3.62	₹0.05	₹0.06	₹0.19	-62.6%
ROE	433.8%	5.2%	6.2%	17.4%	—
ROCE	612.3%	0.9%	8.3%	13.0%	—
Total Debt	—	—	₹0 Cr	₹9 Cr	—
Free Cash Flow	-₹9 Cr	-₹1 Cr	-₹2 Cr	-₹0 Cr	—

🟢 Revenue has grown at 25.5% a year over 3 years.

🟢 EBITDA has grown at 31.0% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.5% over 3 years.

🔴 PAT (Net Profit) has shrunk at 62.2% a year over 3 years.

🔴 EPS has shrunk at 62.6% a year over 3 years.

🔴 ROE has fallen from 433.8% to 17.4% over 3 years (-416.5 pts).

🔴 ROCE has fallen from 612.3% to 13.0% over 3 years (-599.3 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹68 Cr

Total Liabilities

₹34 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.8%

Corporate Actions

Ex-Dividend Date

21 Sept 2011

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 mixed5 general

Avio Smart Market Stack Ltd. Share Price Live Today

CNBC TV18, 16 Oct

Avio Smart Market Stack Limited is Rated Strong Sell

MarketsMojo, 16 Oct

Avio Smart Market Stack signs MoU with Singapore firm to transform rural farming ecosystem

Alice Blue, 04 Oct

Avio Smart Market Stack (NSEI:ASMS) - Stock Analysis

Simply Wall Street, 24 Feb

Avio Smart Market Stack Q1 FY27 Results Preview

Univest, 10 JulResults

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

Avio Smart Market Stack sets Sept 30 AGM for ₹150 cr QIP and Ampivo deal

scanx.trade, 30 Sept

Watch Items

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

StrongFinancial Health

MiddlingGrowth · Profitability · Valuation

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑