Clio Infotech Limited

Technology — Information Technology Services · BSE

₹11.20−₹0.05 (−0.44%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, 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. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Clio Infotech Limited, an information technology (IT) company, engages in the provision of software solutions and IT services for the insurance, capital market, and asset and wealth management industries in India.

IndustryInformation Technology Services

SectorTechnology

Employees2

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹1.42 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin20.0%

Net margin23.3%

Revenue / employee₹1.42 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.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 1.7% 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.

ROCE1.7%

ROE4.0%

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 +15360% while net margin moved -101% 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+15360%

Margin effect-101%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.34 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

62/ 100

Fair

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

18.7x

2Y Median

184.0x

28 monthly readings · mean 192.6x · range 18.7x–358.5x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 90% below its 2y median of 184.0x. 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 is priced broadly in line with the peer median of 16.5x.

vs. its own history

Cheap

184.0x median over 28 months · -90%

vs. sector peers

Fair

16.5x median of 4 peers · +13%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.7x

P/B

0.74x

EV/EBITDA

41.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -1638.0% to 20.0% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -2.9% to 4.0%.
Return on capital is rising
ROCE has improved from -1.9% to 1.7%.
Valuation below its historical average
At 18.7x the stock trades 90% below its own median of 184.0x.

🔴 What Needs Attention1

Debt is rising
Total debt is up 206% over 3 years — worth checking what it funded.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 206% over 3 years, from ₹5 Cr to ₹17 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1638.0% to 20.0%. 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 90% 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.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 29.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 328% a year✓ 436.7% CAGR
Latest reported year was 284.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 29.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 1.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹12 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.7x

Fair

Fairly valued against the generic band

P/B Ratio

0.74x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.6

Profitable

Profitable on a per-share basis

ROE

4.0%

Weak

Weak capital efficiency

ROCE

1.7%

Weak

Low return on total capital employed

Debt/Equity

1.01x

Moderate

Moderate leverage

Revenue Growth (YoY)

284.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1062.1%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹11.2

Operating Margin

29.1%

Good

Healthy core-business profitability

Net Margin

23.0%

Good

Strong bottom-line conversion

Current Ratio

39.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12.4 / 13.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹3 Cr	+436.7%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	₹1 Cr	—
EBITDA Margin	-1638.0%	-101.4%	-48.5%	20.0%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	—
EPS	₹-0.27	₹0.02	₹0.05	₹0.6	—
ROE	-2.9%	0.2%	0.5%	4.0%	—
ROCE	-1.9%	-1.0%	-0.4%	1.7%	—
Total Debt	₹5 Cr	₹5 Cr	₹6 Cr	₹17 Cr	+45.1%
Free Cash Flow	-₹16 Cr	₹1 Cr	-₹0 Cr	₹2 Cr	—

🟢 Revenue has grown at 436.7% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -1638.0% to 20.0% over 3 years (+1658.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.27 to ₹0.6.

🟢 ROE has risen from -2.9% to 4.0% over 3 years (+6.9 pts).

🟢 ROCE has risen from -1.9% to 1.7% over 3 years (+3.6 pts).

🔴 Total Debt has grown at 45.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹16 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34 Cr

Total Liabilities

₹17 Cr

Total Debt

₹17 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

31.4%

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

1 positive5 general

Clio Infotech shareholders approve authorised share capital increase

scanx.trade, 24 Jul

Clio Infotech (BSE:530839) - Stock Analysis

Simply Wall Street, 01 Nov

Clio Infotech Limited Appoints Nakul Maheshwari as Chief Executive Officer, Effective May 18, 2026

www.marketscreener.com, 18 May

Clio Infotech schedules AGM for September 26, 2026

scanx.trade, 22 Aug

Muthoot Microfin standalone net profit rises 1216.18% in the June 2026 quarter

Business Standard, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Sylph Industries (BSE:511447) - Stock Analysis

Simply Wall Street, 21 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟡Financial HealthAdequate12.4/20

🟢GrowthStrong13/20

🟢ProfitabilityStrong10/15

🟢ValuationAttractive12/15

🔴RiskHigh4.4/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 328% a year436.7% CAGR
✓EBITDA margin holds above 18%20.0%
✗Debt / EBITDA falls below 3x29.5x
✓Free cash flow remains positive₹2 Cr
✗ROCE stays above 8%1.7%