CMS Info Systems Limited

Industrials — Specialty Business Services · NSE

₹217.90−₹0.11 (−0.05%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 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 CMS Info Systems Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

CMS Info Systems Limited, together with its subsidiaries, provides cash management and managed services in India. It operates in three segments: Cash Management Services, Managed Services, and Card.

IndustrySpecialty Business Services

SectorIndustrials

Employees9,671

Annual revenue₹2,487 Cr

How does it make money?

Turns over ₹2,487 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 9,671 employees supports ₹25.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin24.3%

Net margin12.2%

Revenue / employee₹25.7 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?Some evidence

ROCE of 16.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.2%

ROE12.5%

Peer median ROE15.2%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 11.9% and earnings to grow about 15.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.9%

Est. earnings growth+15.2%

Analysts4

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +30% while net margin moved -21% 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+30%

Margin effect-21%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 9.1% is steady
✗ Profit CAGR of only 0.7%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of 1.2% is below the longer-term trend — momentum is fading
✗ Profit fell 8.8% in the latest year

Quality vs. Valuation

Company Quality

54/ 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

12.3x

3Y Median

20.5x

40 monthly readings · mean 19.1x · range 11.8x–30.8x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 40% below its 3y median of 20.5x. 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 86% below the peer median of 88.8x.

vs. its own history

Cheap

20.5x median over 40 months · -40%

vs. sector peers

Cheap

88.8x median of 3 peers · -86%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.3x

P/B

1.47x

EV/EBITDA

5.9x

PEG

17.94

Dividend Yield

2.29%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 12.3x the stock trades 40% below its own median of 20.5x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 33.8% to 24.3% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 19.0% to 12.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.2% to 16.2% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 70% against revenue growth of 30% — customers are taking longer to pay.

Red Flags

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 9.10x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.5 points, from 33.8% to 24.3%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹20 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 70% against revenue up 30% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 40% 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 86% 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?

Margins are being competed away
EBITDA margin has fallen from 33.8% to 24.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 9.10x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 70% against revenue up 30%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 19.0% to 12.5%. 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.
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

1EBITDA margin holds above 22%✓ 24.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹20 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 7% a year✓ 9.1% CAGR
Latest reported year was 1.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.2%
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

5 good · 3 neutral · 3 weak

Market Cap

₹3,488 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.3x

Cheap

Cheap against the generic band

P/B Ratio

1.47x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹17.71

Profitable

Profitable on a per-share basis

ROE

12.5%

Moderate

Moderate capital efficiency

ROCE

16.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.10x

High

High leverage

Revenue Growth (YoY)

1.2%

Modest

Modest growth

Profit Growth (YoY)

-8.8%

Falling

Profits are shrinking

Dividend Yield

2.29%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹20 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹217.9

P/E (Forward)

8.6x

Improving

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

Operating Margin

15.1%

Good

Healthy core-business profitability

Net Margin

11.8%

Good

Strong bottom-line conversion

Current Ratio

2.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

223.6 / 237.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,915 Cr	₹2,265 Cr	₹2,425 Cr	₹2,487 Cr	+9.1%
EBITDA	₹647 Cr	₹708 Cr	₹638 Cr	₹605 Cr	-2.2%
EBITDA Margin	33.8%	31.3%	26.3%	24.3%	—
PAT (Net Profit)	₹297 Cr	₹347 Cr	₹372 Cr	₹303 Cr	+0.7%
EPS	₹18.67	₹21.39	₹22.36	₹18.26	-0.7%
ROE	19.0%	17.8%	16.4%	12.5%	—
ROCE	24.2%	22.9%	21.2%	16.2%	—
Total Debt	₹203 Cr	₹181 Cr	₹190 Cr	₹221 Cr	+2.9%
Free Cash Flow	₹213 Cr	₹332 Cr	₹328 Cr	-₹20 Cr	—

🟢 Revenue has grown at 9.1% a year over 3 years.

🔴 EBITDA has shrunk at 2.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 33.8% to 24.3% over 3 years (-9.5 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.7% a year).

🟡 EPS has been broadly flat over 3 years (-0.7% a year).

🔴 ROE has fallen from 19.0% to 12.5% over 3 years (-6.6 pts).

🔴 ROCE has fallen from 24.2% to 16.2% over 3 years (-8.0 pts).

🔴 Total Debt has grown at 2.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹213 Cr to -₹20 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,238 Cr

Total Liabilities

₹806 Cr

Total Debt

₹221 Cr

Cash & Equivalents

₹112 Cr

Operating Cash Flow

₹390 Cr

Capex

-₹409 Cr

Shareholding (proxy)

Institutional Holding

46.3%

Insider Holding

7.7%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹318.25

+46.1% vs CMP

Target Range

₹273 – ₹355

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

4 mixed2 general

Earnings Release: Here's Why Analysts Cut Their CMS Info Systems Limited (NSE:CMSINFO) Price Target To ₹335

Simply Wall Street, 13 AugAnalyst view

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

CMS Info Systems Share Price: fresh 52-week low explained

Univest, 27 Aug

CMSINFO Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

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

Paytm wins, but ATM also wins! Why CMS Info Systems shares jumped 7% on UPI MDR

The Economic Times, 16 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Inside CMS Info Systems’ Strategy to Strengthen Its Market Position | Fortune India: In Conversation

Fortune India, 12 Oct

Earnings call transcript: CMS Info Systems misses Q1 2026 revenue target, shares fall

Investing.com, 11 AugPrice 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.

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.
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 QualityStrong13.1/20

🟡Financial HealthAdequate10.6/20

🔴GrowthWeak8.9/20

🟡ProfitabilityModerate8.2/15

🟢ValuationAttractive12.8/15

🟡RiskModerate4.8/10

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.

This thesis breaks if

✓EBITDA margin holds above 22%24.3%
✗Free cash flow remains positive-₹20 Cr
✓Revenue growth stays above 7% a year9.1% CAGR
✓Debt / EBITDA stays below 2x0.4x
✓ROCE stays above 13%16.2%