In simple words: The company is currently losing money, 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, 6:09 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.
The 60-second version of Athena Global Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
Athena Global Technologies Limited provides software application development, quality assurance (QA) and testing, and digital transformation solutions and services to enterprises in India and internationally.
IndustrySoftware - Application
SectorTechnology
Employees65
Annual revenue₹11 Cr
How does it make money?
Turns over ₹11 Cr a year. Of every ₹100 of sales, about ₹-124 reaches shareholders as profit, with ₹-104 left at the operating level before interest, tax and depreciation. Each of its 65 employees supports ₹17.2 lakh of revenue a year, the signature of a people-led business.
EBITDA margin-104.4%
Net margin-124.0%
Revenue / employee₹17.2 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 3.8% 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.
ROCE3.8%
ROE-9.8%
Peer median ROE32.0%
What has been driving growth?
Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -7% while net margin moved -30% 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-7%
Margin effect-30%
DalalBaazaar Score
31/ 100
Weak
Weighted across six categories. Every point is explained below.
✗ Revenue has contracted at 2.3% a year
Quality vs. Valuation
Company Quality
26/ 100
Weak
How good the business is, ignoring the share price entirely.
vs
Valuation
36/ 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
0.57x
EV/EBITDA
—
PEG
—
Dividend Yield
None
What's Good / What's Bad
🟢 What's Going Well2
Margins are improving
EBITDA margin is up from -121.5% to -104.4% over 3 years.
Return on capital is rising
ROCE has improved from -22.2% to 3.8%.
🔴 What Needs Attention3
Debt is rising
Total debt is up 75% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 0.91 — near-term obligations exceed near-term assets.
Red Flags
6 items require attention · 4 high · 2 watch
🔴Debt has risen sharplyFinancial
Total debt is up 75% over 3 years, from ₹74 Cr to ₹130 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.6x — little room if earnings dip.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴The company is lossmakingFinancial
Net profit of -₹14 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹62 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.91 — near-term obligations exceed near-term assets.
Investment Thesis
🟢 Bull CaseWhat could make this work?
Margin expansion has further to run
EBITDA margin has risen from -121.5% to -104.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
🔴 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
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 -106%✓ -104.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹62 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 0.6x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ 3.8%
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
3 good · 3 neutral · 5 weak
Market Cap
₹80 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
0.57x
Reasonable
Reasonable against the company's book value
EPS (TTM)
₹-30.3
Loss-making
Negative earnings per share — the business is losing money
ROE
-9.8%
Weak
Weak capital efficiency
ROCE
3.8%
Weak
Low return on total capital employed
Debt/Equity
0.92x
Moderate
Moderate leverage
Revenue Growth (YoY)
57.2%
Healthy
Healthy top-line growth
Profit Growth (YoY)
30.2%
Healthy
Profits growing at a healthy clip
Dividend Yield
None
None
No dividend yield reported — usually means no payout, but verify if one was recently initiated
Free Cash Flow
-₹62 Cr
Cash burning
Spending more cash than the operations bring in
More Metrics
CMP
₹54.55
Operating Margin
-8.8%
Weak
Thin margins leave little room for error
Net Margin
0.0%
Weak
Very little revenue reaches the bottom line
Current Ratio
0.91
Adequate
Adequate, but no real cushion
Beta (vs Nifty)
0.38
Defensive
Steadier than the market
52W Range Position
12%
Near low
Near its 52-week low
Technical Snapshot
SMA 20 / SMA 50
53.9 / 54.6
Bearish alignment (short < long)
Price vs SMA 200
Below
Long-term downtrend
RSI (14)
49.1
Neutral momentum
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹12 Cr
₹14 Cr
₹16 Cr
₹11 Cr
-2.3%
EBITDA
-₹15 Cr
₹221 Cr
-₹6 Cr
-₹12 Cr
—
EBITDA Margin
-121.5%
1603.7%
-40.2%
-104.4%
—
PAT (Net Profit)
-₹21 Cr
₹206 Cr
-₹20 Cr
-₹14 Cr
—
EPS
₹-16.46
₹139.88
₹-14.15
₹-9.58
—
ROE
—
102.8%
-11.0%
-9.8%
—
ROCE
-22.2%
81.1%
-2.8%
3.8%
—
Total Debt
₹74 Cr
₹86 Cr
₹100 Cr
₹130 Cr
+20.4%
Free Cash Flow
-₹27 Cr
₹4 Cr
₹6 Cr
-₹62 Cr
—
🔴 Revenue has shrunk at 2.3% a year over 3 years.
🟢 EBITDA Margin has risen from -121.5% to -104.4% over 3 years (+17.1 pts).
🔴 ROE has fallen from 102.8% to -9.8% over 3 years (-112.6 pts).
🟢 ROCE has risen from -22.2% to 3.8% over 3 years (+26.0 pts).
🔴 Total Debt has grown at 20.4% a year over 3 years.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
DalalBaazaar Thesis
🔴Business QualityWeak7.5/20
🔴Financial HealthStretched6.6/20
🔴GrowthWeak2.4/20
🔴ProfitabilityWeak3.2/15
🟡ValuationFair7.1/15
🔴RiskHigh4/10
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. 4 high-severity red flags sit above this conclusion and should be read first.
