Benchmark Computer Solutions Limited

Technology — Software - Infrastructure · BSE

₹46.11−₹0.70 (−1.50%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Benchmark Computer Solutions Limited operates as an information technology (IT) infrastructure solutions and technology consulting company in India.

IndustrySoftware - Infrastructure

SectorTechnology

Employees112

Annual revenue₹66 Cr

How does it make money?

Turns over ₹66 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 112 employees supports ₹58.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹58.9 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?Some evidence

ROCE of 15.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +107% while net margin moved -16% 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+107%

Margin effect-16%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.27 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

81/ 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

9.4x

3Y Median

8.5x

36 monthly readings · mean 8.1x · range 0.0x–18.9x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 8.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 43% below the peer median of 16.5x.

vs. its own history

Fair

8.5x median over 36 months · +10%

vs. sector peers

Cheap

16.5x median of 4 peers · -43%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

2.7x

PEG

0.47

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 48% over 3 years.
Cash generation is improving
Free cash flow is up 206% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.2% to 11.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.2% to 15.3% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.50x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 1275% against revenue up 107% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 48% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 43% 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 11.5% to 9.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 9.50x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 15.2% to 11.1%. 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.
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

1Revenue growth stays above 21% a year✓ 27.4% CAGR
Latest reported year was 52.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹32 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.4x

Cheap

Cheap against the generic band

P/B Ratio

1.04x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.93

Profitable

Profitable on a per-share basis

ROE

11.8%

Moderate

Moderate capital efficiency

ROCE

15.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.50x

High

High leverage

Revenue Growth (YoY)

52.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

180.7%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

5.5%

Average

Average asset productivity

Operating Margin

6.2%

Average

Average margins

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

2.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.27

Market-like

Moves roughly in line with the market

52W Range Position

87%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

43.7 / 41.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

73.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹32 Cr	₹35 Cr	₹43 Cr	₹66 Cr	+27.4%
EBITDA	₹4 Cr	₹5 Cr	₹5 Cr	₹6 Cr	+19.2%
EBITDA Margin	11.5%	13.6%	10.8%	9.4%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹3 Cr	+20.0%
EPS	₹1,959.21	₹5.73	₹2.48	—	—
ROE	15.2%	8.7%	6.3%	11.1%	—
ROCE	19.2%	12.4%	8.9%	15.3%	—
Total Debt	₹6 Cr	₹6 Cr	₹6 Cr	₹3 Cr	-19.4%
Free Cash Flow	₹2 Cr	-₹1 Cr	-₹4 Cr	₹7 Cr	+45.2%

🟢 Revenue has grown at 27.4% a year over 3 years.

🟢 EBITDA has grown at 19.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.5% to 9.4% over 3 years (-2.1 pts).

🟢 PAT (Net Profit) has grown at 20.0% a year over 3 years.

🔴 ROE has fallen from 15.2% to 11.1% over 3 years (-4.1 pts).

🔴 ROCE has fallen from 19.2% to 15.3% over 3 years (-3.9 pts).

🟢 Total Debt has shrunk at 19.4% a year over 3 years.

🟢 Free Cash Flow has grown at 45.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹46 Cr

Total Liabilities

₹16 Cr

Cash & Equivalents

₹18 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.2%

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

2 mixed4 general

BENCHMARK Share Price

Upstox, 15 Oct

Benchmark Computer Solutions AGM passes resolutions with 100% votes

scanx.trade, 29 Sept

Benchmark Computer Solutions Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

Introducing GPT-6 Sol and Luna

OpenAI, 15 Oct

GTT Data Solutions (GTTDATA) Share Price Rises 9.01% Today

Univest, 15 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Benchmark Computer Solutions FY26 Results: Net profit doubles to ₹338.7 lakh

scanx.trade, 03 SeptResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingProfitability

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.

All 5 tripwires holding · see Key things to watch ↑