Chatterbox Technologies Limited

Communication Services — Advertising Agencies · BSE

₹31.25−₹0.55 (−1.73%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Chatterbox Technologies Limited engages in the provision of digital and influencer marketing, and social media management services in India and the Middle East. It operates in two segments, Chtrbox and Chtrsocial.

IndustryAdvertising Agencies

SectorCommunication Services

Employees117

Annual revenue₹84 Cr

How does it make money?

Turns over ₹84 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 117 employees supports ₹72.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹72.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. 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 17.6% 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 ROE20.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +111% while net margin moved +237% 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+111%

Margin effect+237%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

4.2x

1.2Y Median

9.7x

14 monthly readings · mean 10.3x · range 5.2x–22.0x

Sector Median

21.7x

median of 2 sector peers

🟢Current valuation is approximately 57% below its 1.2y median of 9.7x. 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 81% below the peer median of 21.7x.

vs. its own history

Cheap

9.7x median over 14 months · -57%

vs. sector peers

Cheap

21.7x median of 2 peers · -81%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

2.7x

PEG

0.05

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 3.0% to 17.1% over 3 years.
Return on capital is rising
ROCE has improved from 14.2% to 17.6%.
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

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 269% against revenue up 111% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹32 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.0% to 17.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 57% 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 81% 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?

Sales are being booked faster than collected
Receivables are up 269% against revenue up 111%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1Revenue growth stays above 21% a year✓ 28.3% CAGR
Latest reported year was 68.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹32 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 15%✓ 17.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 9.7x✓ 4.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹44 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.2x

Cheap

Cheap against the generic band

P/B Ratio

0.63x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.41

Profitable

Profitable on a per-share basis

ROE

19.0%

Strong

Strong capital efficiency

ROCE

17.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

68.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-33.4%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

11.1%

Good

Assets are working hard

Operating Margin

11.7%

Average

Average margins

Net Margin

10.8%

Good

Strong bottom-line conversion

Current Ratio

3.03

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

33.6 / 39.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹40 Cr	₹55 Cr	₹59 Cr	₹84 Cr	+28.3%
EBITDA	₹1 Cr	₹12 Cr	₹12 Cr	₹14 Cr	+130.0%
EBITDA Margin	3.0%	21.4%	20.6%	17.1%	—
PAT (Net Profit)	₹1 Cr	₹9 Cr	₹9 Cr	₹9 Cr	+92.4%
EPS	₹0.9	₹6.03	—	—	—
ROE	15.5%	50.8%	34.5%	13.0%	—
ROCE	14.2%	68.7%	46.8%	17.6%	—
Free Cash Flow	-₹4 Cr	₹2 Cr	-₹1 Cr	-₹32 Cr	—

🟢 Revenue has grown at 28.3% a year over 3 years.

🟢 EBITDA has grown at 130.0% a year over 3 years.

🟢 EBITDA Margin has risen from 3.0% to 17.1% over 3 years (+14.1 pts).

🟢 PAT (Net Profit) has grown at 92.4% a year over 3 years.

🔴 ROE has fallen from 15.5% to 13.0% over 3 years (-2.5 pts).

🟢 ROCE has risen from 14.2% to 17.6% over 3 years (+3.4 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹91 Cr

Total Liabilities

₹21 Cr

Total Debt

—

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹32 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.3%

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

6 general

Chatterbox Technologies Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Chatterbox Technologies passes all AGM resolutions with 100% majority

scanx.trade, 25 Sept

Chatterbox Technologies Ltd Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 29 Aug

CHTR Stock Price and Chart — BSE:CHTR

TradingView, 03 Oct

Chatterbox Technologies shares list at 17% premium over IPO price on BSE SME platform

The Economic Times, 03 Oct

Chatterbox Technologies Limited Announces Key Management Changes in Company Secretary Position

scanx.trade, 29 Apr

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑