Datakosa Limited

Sector n/a · BSE

₹13.25₹0.00 (0.00%)

DalalBaazaar Score

42 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Datakosa Limited, together with its subsidiaries, provides information technology (IT) and IT enabling services in India.

Employees23

Annual revenue₹19 Cr

How does it make money?

Turns over ₹19 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 23 employees supports ₹84.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹84.5 lakh

What is its competitive advantage?Little sign of one

Returns on capital of 7.4% 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.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -51% while net margin moved -111% 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-51%

Margin effect-111%

DalalBaazaar Score

42/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 21.0% a year

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

54/ 100

Fair

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

Fair

15x–35x

EV/EBITDA

17.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -60.6% to 9.5% over 3 years.
Debt is being paid down
Total debt is down 98% over 3 years.
Return on equity is rising
ROE has improved from -62.6% to 6.1%.
Return on capital is rising
ROCE has improved from -54.1% to 7.4%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 611% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -60.6% to 9.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 98% 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 8%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 7.4%
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 · 5 neutral · 3 weak

Market Cap

₹32 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.45

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

7.4%

Weak

Low return on total capital employed

Debt/Equity

1.11x

Moderate

Moderate leverage

Revenue Growth (YoY)

1.6%

Modest

Modest growth

Profit Growth (YoY)

212.5%

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

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-80.5%

Weak

Thin margins leave little room for error

Net Margin

-1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

6.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.89

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

13.4 / 13.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

77.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹39 Cr	₹17 Cr	₹6 Cr	₹19 Cr	-21.0%
EBITDA	-₹24 Cr	₹0 Cr	-₹1 Cr	₹2 Cr	—
EBITDA Margin	-60.6%	1.5%	-18.1%	9.5%	—
PAT (Net Profit)	-₹26 Cr	-₹0 Cr	-₹1 Cr	₹1 Cr	—
EPS	₹-85.36	₹-0.95	₹-0.74	₹0.65	—
ROE	-62.6%	-0.0%	-9.4%	6.1%	—
ROCE	-54.1%	-0.0%	-8.6%	7.4%	—
Total Debt	₹13 Cr	—	₹0 Cr	₹0 Cr	-72.6%
Free Cash Flow	₹7 Cr	-₹3 Cr	-₹2 Cr	-₹9 Cr	—

🔴 Revenue has shrunk at 21.0% a year over 3 years.

🟢 EBITDA has turned positive, from -₹24 Cr to ₹2 Cr.

🟢 EBITDA Margin has risen from -60.6% to 9.5% over 3 years (+70.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹26 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-85.36 to ₹0.65.

🟢 ROE has risen from -62.6% to 6.1% over 3 years (+68.7 pts).

🟢 ROCE has risen from -54.1% to 7.4% over 3 years (+61.5 pts).

🟢 Total Debt has shrunk at 72.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹7 Cr to -₹9 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹27 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹5 Cr

Recent News

6 general

DATAKOSA Stock Price and Chart — BSE:DATAKOSA

TradingView, 15 Oct

Datakosa Limited Statistics – BSE:DATAKOSA

TradingView, 16 Oct

CapEx per share of Datakosa Limited – BSE:DATAKOSA

TradingView, 16 Oct

Datakosa (BSE:539122) - Stock Analysis

Simply Wall Street, 27 Sept

Bodhtree Consulting updates corporate email ID following name change to Datakosa

scanx.trade, 12 Oct

Datakosa Limited (539122) Company Information

Simply Wall Street, 27 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.
Sector/industry classification unavailable — verify manually for peer comparison.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑