B2B Software Technologies Limited

Technology — Information Technology Services · BSE

₹22.00+₹0.11 (+0.50%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of B2B Software Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

B2B Software Technologies Limited operates as a business solution implementation company in India and the United States.

IndustryInformation Technology Services

SectorTechnology

Employees106

Annual revenue₹30 Cr

How does it make money?

Turns over ₹30 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 106 employees supports ₹28.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹28.7 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 9.5% 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 +54% while net margin moved -23% 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+54%

Margin effect-23%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROCE of 9.5% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 8.2% is thin — little cushion if costs rise
• Net margin of 9.9% is reasonable
• Revenue has compounded at 15.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

77/ 100

Cheap

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

12.7x

3Y Median

17.0x

40 monthly readings · mean 17.3x · range 12.4x–23.8x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 3y median of 17.0x. 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 23% below the peer median of 16.5x.

vs. its own history

Cheap

17.0x median over 40 months · -25%

vs. sector peers

Cheap

16.5x median of 4 peers · -23%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.2x

PEG

2.10

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 113% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 10.1% to 8.2% over 3 years.

Red Flags

1 item require attention · 1 watch

🟡Inventory building faster than salesFinancial
Inventory up 79% against revenue up 54% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 25% 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.
Cheaper than its peers
It trades 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 10.1% to 8.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 12% a year✓ 15.5% CAGR
Latest reported year was 14.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✓ 9.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 17.0x✓ 12.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

7 good · 4 neutral · 0 weak

Market Cap

₹38 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.7x

Cheap

Cheap against the generic band

P/B Ratio

1.50x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.73

Profitable

Profitable on a per-share basis

ROE

11.3%

Moderate

Moderate capital efficiency

ROCE

9.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

14.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

42.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

6.05%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.4%

Average

Average margins

Net Margin

9.9%

Average

Average bottom-line conversion

Current Ratio

11.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.06

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

22.5 / 23.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹20 Cr	₹24 Cr	₹30 Cr	+15.5%
EBITDA	₹2 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+7.5%
EBITDA Margin	10.1%	5.0%	8.8%	8.2%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹3 Cr	+6.1%
EPS	₹1.37	₹1.06	₹1.51	₹1.32	-1.3%
ROE	13.1%	9.2%	11.7%	11.3%	—
ROCE	10.7%	5.4%	8.5%	9.5%	—
Free Cash Flow	₹1 Cr	₹1 Cr	₹2 Cr	₹3 Cr	+28.7%

🟢 Revenue has grown at 15.5% a year over 3 years.

🟢 EBITDA has grown at 7.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.1% to 8.2% over 3 years (-1.9 pts).

🟢 PAT (Net Profit) has grown at 6.1% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (-1.3% a year).

🔴 ROE has fallen from 13.1% to 11.3% over 3 years (-1.8 pts).

🔴 ROCE has fallen from 10.7% to 9.5% over 3 years (-1.1 pts).

🟢 Free Cash Flow has grown at 28.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹28 Cr

Total Liabilities

₹3 Cr

Total Debt

—

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.8%

Corporate Actions

Dividend Rate

₹1.33

Ex-Dividend Date

06 Feb 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

1 positive5 general

B2B Software Technologies Confirms Record Date for Bonus Share Issue

scanx.trade, 26 Mar

B2B Software Technologies Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

IT Company Under Rs 50 Announces 1:2 Bonus Issue, Interim Dividend; Should You Buy The Stock?

Goodreturns, 02 FebCapital return

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

B2B Software Technologies Secures $0.16 Million Microsoft ERP Order in Kenya and Ethiopia

Sahi, 02 Jun

B2B Software Consolidated June 2026 Net Sales at Rs 7.39 crore, up 14.15% Y-o-Y

Moneycontrol.com, 30 Jul

B2B Software Technologies Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability · 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.

All 5 tripwires holding · see Key things to watch ↑