AvenuesAI Limited

Technology — Software - Infrastructure · NSE

₹138.50+₹124.67 (+901.45%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, 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 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

AvenuesAI Limited, a payment infrastructure company, provides digital payments and lending solutions for merchants, enterprises, corporations, governments, and financial institutions in India, the United Arab Emirates, and internationally.

IndustrySoftware - Infrastructure

SectorTechnology

Employees624

Annual revenue₹8,116 Cr

How does it make money?

Turns over ₹8,116 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 624 employees supports ₹13.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹13.01 Cr

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 6.5% 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 is the outlook?

1 analysts covering the stock expect revenue to grow about 13.4% and earnings to grow about 22.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.4%

Est. earnings growth+22.2%

Analysts1

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 +314% while net margin moved -52% 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+314%

Margin effect-52%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.9% is weak

Quality vs. Valuation

Company Quality

52/ 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

13.7x

3Y Median

324.6x

40 monthly readings · mean 354.8x · range 148.7x–694.3x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 96% below its 3y median of 324.6x. 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 17% below the peer median of 16.5x.

vs. its own history

Cheap

324.6x median over 40 months · -96%

vs. sector peers

Fair

16.5x median of 4 peers · -17%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.0x

PEG

0.53

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 289% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 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

🔴Debt has risen sharplyFinancial
Total debt is up 5252% over 3 years, from ₹8 Cr to ₹430 Cr.
🔴High leverageFinancial
Debt/Equity of 8.63x — earnings must service borrowings before shareholders see anything.
🟡Margins are compressingFinancial
EBITDA margin is down 4.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 96% 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?

Margins are being competed away
EBITDA margin has fallen from 10.1% to 6.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 8.63x. Interest is payable whether or not the business has a good year.
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 45% a year✓ 60.5% CAGR
Latest reported year was 109.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹196 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹4,923 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.7x

Cheap

Cheap against the generic band

P/B Ratio

0.83x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.1

Profitable

Profitable on a per-share basis

ROE

5.9%

Weak

Weak capital efficiency

ROCE

6.5%

Weak

Low return on total capital employed

Debt/Equity

8.63x

High

High leverage

Revenue Growth (YoY)

109.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.3%

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

₹196 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

12.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

2.5%

Weak

Thin margins leave little room for error

Net Margin

3.1%

Average

Average bottom-line conversion

Current Ratio

2.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

151.2 / 154.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

20.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,962 Cr	₹3,150 Cr	₹3,993 Cr	₹8,116 Cr	+60.5%
EBITDA	₹198 Cr	₹267 Cr	₹372 Cr	₹487 Cr	+35.0%
EBITDA Margin	10.1%	8.5%	9.3%	6.0%	—
PAT (Net Profit)	₹140 Cr	₹158 Cr	₹225 Cr	₹279 Cr	+26.0%
EPS	₹0.45	₹0.5	₹0.75	₹0.93	+27.7%
ROE	4.4%	4.7%	6.0%	5.9%	—
ROCE	5.5%	5.7%	7.6%	6.5%	—
Total Debt	₹8 Cr	₹83 Cr	₹172 Cr	₹430 Cr	+276.9%
Free Cash Flow	₹50 Cr	₹437 Cr	-₹304 Cr	₹196 Cr	+57.3%

🟢 Revenue has grown at 60.5% a year over 3 years.

🟢 EBITDA has grown at 35.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.1% to 6.0% over 3 years (-4.1 pts).

🟢 PAT (Net Profit) has grown at 26.0% a year over 3 years.

🟢 EPS has grown at 27.7% a year over 3 years.

🟢 ROE has risen from 4.4% to 5.9% over 3 years (+1.5 pts).

🟡 ROCE has held roughly flat at 6.5% over 3 years.

🔴 Total Debt has grown at 276.9% a year over 3 years.

🟢 Free Cash Flow has grown at 57.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,302 Cr

Total Liabilities

₹2,325 Cr

Cash & Equivalents

₹481 Cr

Operating Cash Flow

₹537 Cr

Capex

-₹341 Cr

Corporate Actions

Ex-Dividend Date

07 Aug 2024

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹200

+44.4% vs CMP

Target Range

₹200 – ₹200

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 positive1 mixed3 general

AvenuesAI: Trading suspended; what 7.21 lakh stock investors need to know -

IndiaIPO, 13 Oct

AvenuesAI: Trading suspended; what 7.21 lakh stock investors need to know

Business Today, 13 Oct

CCAVENUE Forecast — Price Target — Prediction for 2027

TradingView, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

AvenuesAI Ltd Dividend History, Yield & Record Date

INDmoney, 09 OctCapital return

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

Upgrade: Analysts Just Made A Massive Increase To Their AvenuesAI Limited (NSE:CCAVENUE) Forecasts

Simply Wall Street, 14 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

AvenuesAI shares: Why your shares may not be visible in your demat account

Business Today, 14 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health

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

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑