CapitalNumbers Infotech Limited

Technology — Information Technology Services · BSE

₹73.85−₹3.04 (−3.95%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by 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. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

CapitalNumbers Infotech Limited provides digital consulting, information technology engineering, and software development solutions to enterprises and startups worldwide.

IndustryInformation Technology Services

SectorTechnology

Employees446

Annual revenue₹105 Cr

How does it make money?

Turns over ₹105 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 446 employees supports ₹23.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹23.6 lakh

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?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 ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +13% while net margin moved +30% 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+13%

Margin effect+30%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

87/ 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

7.1x

2Y Median

8.9x

23 monthly readings · mean 10.2x · range 6.2x–23.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 21% below its 2y median of 8.9x. 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 57% below the peer median of 16.5x.

vs. its own history

Cheap

8.9x median over 23 months · -21%

vs. sector peers

Cheap

16.5x median of 4 peers · -57%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.6x

PEG

0.52

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 27.1% to 29.4% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 28.9% to 13.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 37.7% to 17.6% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Receivables growing faster than salesFinancial
Receivables up 114% against revenue up 13% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 27.1% to 29.4%. 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 21% 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 57% 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 114% against revenue up 13%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 28.9% to 13.3%. 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 27%✓ 29.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.3% CAGR
Latest reported year was 5.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹16 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 8.9x✓ 7.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹180 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.1x

Cheap

Cheap against the generic band

P/B Ratio

0.94x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.44

Profitable

Profitable on a per-share basis

ROE

14.6%

Moderate

Moderate capital efficiency

ROCE

17.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.57x

Low

Conservative leverage

Revenue Growth (YoY)

5.7%

Modest

Modest growth

Profit Growth (YoY)

-18.9%

Falling

Profits are shrinking

Dividend Yield

2.71%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹16 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

8.9%

Good

Assets are working hard

Operating Margin

24.0%

Good

Healthy core-business profitability

Net Margin

24.3%

Good

Strong bottom-line conversion

Current Ratio

29.84

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

76.7 / 80.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹93 Cr	₹98 Cr	₹100 Cr	₹105 Cr	+4.3%
EBITDA	₹25 Cr	₹35 Cr	₹31 Cr	₹31 Cr	+7.2%
EBITDA Margin	27.1%	35.7%	31.2%	29.4%	—
PAT (Net Profit)	₹17 Cr	₹26 Cr	₹26 Cr	₹26 Cr	+13.7%
EPS	₹7.1	₹10.7	₹11.83	—	—
ROE	28.9%	38.8%	16.4%	13.3%	—
ROCE	37.7%	50.6%	21.4%	17.6%	—
Free Cash Flow	₹14 Cr	₹20 Cr	₹18 Cr	₹16 Cr	+5.5%

🟢 Revenue has grown at 4.3% a year over 3 years.

🟢 EBITDA has grown at 7.2% a year over 3 years.

🟢 EBITDA Margin has risen from 27.1% to 29.4% over 3 years (+2.3 pts).

🟢 PAT (Net Profit) has grown at 13.7% a year over 3 years.

🔴 ROE has fallen from 28.9% to 13.3% over 3 years (-15.6 pts).

🔴 ROCE has fallen from 37.7% to 17.6% over 3 years (-20.1 pts).

🟢 Free Cash Flow has grown at 5.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹200 Cr

Total Liabilities

₹8 Cr

Total Debt

—

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹17 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.6%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

22 Sept 2026

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 positive1 mixed4 general

CapitalNumbers Infotech approves IPO object changes for acquisition

scanx.trade, 29 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Capital Numbers Infotech acquires New-Jersey based Epitome Cloud Inc.

Business Standard, 25 Aug

CAPITALNUMBERS INFOTECH LIMIT Share Price - Live CNINFOTECH Stock Price & Chart

Upstox, 23 Nov

CapitalNumbers Infotech fixes Sept 22 record date for final dividend

scanx.trade, 09 SeptCapital return

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

Capital Numbers Infotech Ltd | Stock Share Price Live

MarketSmith India, 29 Jan

CapitalNumbers Infotech gains after securing UK AI Healthcare project order

Business Standard, 11 Jun

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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability · Risk

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑