Cerebra Integrated Technologies Limited

Industrials — Waste Management · BSE

₹2.61₹0.00 (0.00%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by short-term liabilities exceed short-term assets, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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.

Understanding the Business

Company site ↗

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

What does this company do?

Cerebra Integrated Technologies Limited, together with its subsidiary, trades in computer systems and peripherals in India.

IndustryWaste Management

SectorIndustrials

Employees10

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹-1204 reaches shareholders as profit, with ₹-1151 left at the operating level before interest, tax and depreciation. Each of its 10 employees supports ₹59.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-1151.0%

Net margin-1203.5%

Revenue / employee₹59.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of -86.4% 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.

ROCE-86.4%

ROE-76.9%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -93% while net margin moved -41363% 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-93%

Margin effect-41363%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROCE of -86.4% is below 10% — capital is not working hard
✗ ROCE has fallen by 90.0 points — returns are eroding
✗ EBITDA margin of -1151.0% is thin — little cushion if costs rise
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

33/ 100

Weak

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

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

0.31x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 11.6% to -1151.0% over 3 years.
Return on equity is falling
ROE has dropped from 1.0% to -76.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 3.6% to -86.4% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.49 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -10.5x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹72 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 1162.6 points, from 11.6% to -1151.0%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -8.4x to -10.5x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.49 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹4 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 11.6% to -1151.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 1.0% to -76.9%. 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.
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
3 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 -1153%✓ -1151.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -10.5x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -86.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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 · 2 neutral · 6 weak

Market Cap

₹29 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

0.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-5.72

Loss-making

Negative earnings per share — the business is losing money

ROE

-76.9%

Weak

Weak capital efficiency

ROCE

-86.4%

Weak

Low return on total capital employed

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

-82.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-51.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹2.61

Operating Margin

-1824.9%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.49

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.49

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.7 / 2.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹86 Cr	₹52 Cr	₹36 Cr	₹6 Cr	-59.0%
EBITDA	₹10 Cr	-₹36 Cr	-₹32 Cr	-₹69 Cr	—
EBITDA Margin	11.6%	-69.8%	-90.7%	-1151.0%	—
PAT (Net Profit)	₹3 Cr	-₹48 Cr	-₹47 Cr	-₹72 Cr	—
EPS	₹2.31	₹-4.32	₹-4.22	₹-6.4	—
ROE	1.0%	-22.8%	-28.7%	-76.9%	—
ROCE	3.6%	-23.7%	-31.0%	-86.4%	—
Total Debt	₹41 Cr	₹39 Cr	₹40 Cr	₹44 Cr	+2.4%
Free Cash Flow	-₹2 Cr	₹2 Cr	₹4 Cr	₹4 Cr	—

🔴 Revenue has shrunk at 59.0% a year over 3 years.

🔴 EBITDA has turned negative, from ₹10 Cr to -₹69 Cr.

🔴 EBITDA Margin has fallen from 11.6% to -1151.0% over 3 years (-1162.6 pts).

🔴 PAT (Net Profit) has turned negative, from ₹3 Cr to -₹72 Cr.

🔴 EPS has turned negative, from ₹2.31 to ₹-6.4.

🔴 ROE has fallen from 1.0% to -76.9% over 3 years (-77.9 pts).

🔴 ROCE has fallen from 3.6% to -86.4% over 3 years (-90.0 pts).

🔴 Total Debt has grown at 2.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹189 Cr

Total Liabilities

₹98 Cr

Total Debt

₹44 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

27.4%

Corporate Actions

Ex-Dividend Date

11 Sept 2002

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 mixed3 general

Cerebra Integrated Technologies Share Price Target 2026: Rs 4.63 Analyst Forecast

Univest, 17 JunAnalyst view

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

Cerebra Integrated Technologies approves CIRP initiation

scanx.trade, 06 Jun

Cerebra Integrated Technologies reports consolidated net loss of Rs 6.46 crore in the June 2026 quarter

Business Standard, 13 AugResults

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

Cerebra Integrated Technologies (NSE:CEREBRAINT) Is Making Moderate Use Of Debt

Simply Wall Street, 30 Nov

Why Is Cerebra Integrated Technologies Share Price Falling Key Reasons 2026

Univest, 21 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Cerebra Integrated Technologies schedules 32nd AGM for September 29

scanx.trade, 07 Sept

Watch Items

Revenue growth is negative (-82.0%) on the latest reported period — check if this is one-off or a trend.
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.
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

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate11/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak3.8/15

🟡ValuationFair7.1/15

🔴RiskHigh4.4/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -1153%-1151.0%
✗Interest cover stays above 3x-10.5x
✓Free cash flow remains positive₹4 Cr
✗ROCE stays above 8%-86.4%