Cosyn Limited

Technology — Information Technology Services · BSE

₹20.47+₹0.14 (+0.69%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Cosyn Limited provides information technology services to governments, universities, and enterprises in India.

IndustryInformation Technology Services

SectorTechnology

Annual revenue₹11 Cr

How does it make money?

Turns over ₹11 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of 3.6% 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.

Peer median ROE32.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -28% while net margin moved -37% 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-28%

Margin effect-37%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.3% a year
✗ Profit has declined at 23.2% a year

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

47/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

136.5x

3Y Median

124.5x

40 monthly readings · mean 303.4x · range 90.8x–1083.8x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 124.5x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 725% above the peer median of 16.5x.

vs. its own history

Fair

124.5x median over 40 months · +10%

vs. sector peers

Expensive

16.5x median of 4 peers · +725%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

10.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 11.8% to 16.8% over 3 years.
Very low debt
Debt/Equity of 0.14x leaves the balance sheet with plenty of headroom.
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

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 715% over 3 years, from ₹0 Cr to ₹4 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 56% against revenue up -28% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 55% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.8% to 16.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

A premium to the sector to defend
It trades 725% above the peer median. That premium needs a reason that persists, or it closes.
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
4 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 15%✓ 16.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 3.6%
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

4 good · 3 neutral · 4 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

136.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.63x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.15

Profitable

Profitable on a per-share basis

ROE

0.4%

Weak

Weak capital efficiency

ROCE

3.6%

Weak

Low return on total capital employed

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

48.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

1.7x

Improving

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

Operating Margin

9.5%

Average

Average margins

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.13

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

21.3 / 22.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹16 Cr	₹15 Cr	₹11 Cr	-10.3%
EBITDA	₹2 Cr	₹3 Cr	-₹0 Cr	₹2 Cr	+0.7%
EBITDA Margin	11.8%	20.2%	-0.9%	16.8%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-23.2%
EPS	₹0.33	₹0.05	₹0.21	₹0.15	-23.1%
ROE	0.9%	0.1%	0.6%	0.4%	—
ROCE	2.9%	8.6%	5.0%	3.6%	—
Total Debt	₹0 Cr	₹2 Cr	₹4 Cr	₹4 Cr	+101.3%
Free Cash Flow	₹1 Cr	-₹3 Cr	-₹3 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 10.3% a year over 3 years.

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

🟢 EBITDA Margin has risen from 11.8% to 16.8% over 3 years (+4.9 pts).

🔴 PAT (Net Profit) has shrunk at 23.2% a year over 3 years.

🔴 EPS has shrunk at 23.1% a year over 3 years.

🟡 ROE has held roughly flat at 0.4% over 3 years.

🟡 ROCE has held roughly flat at 3.6% over 3 years.

🔴 Total Debt has grown at 101.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹35 Cr

Total Liabilities

₹8 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

57.7%

Corporate Actions

Ex-Dividend Date

20 Sept 2019

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

3 mixed3 general

Cosyn Ltd seeks approval for Madhuri Muddana as Independent Director

scanx.trade, 17 Jul

Upcoming Q1 results this week: HCL Tech, RIL, Jio Fin, Wipro, Kotak Mahindra Bank, ITC Hotels and more

Upstox, 11 JulResults

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

Cosyn Limited Schedules Board Meeting on May 26, 2026 to Approve Audited Financial Results for FY26

scanx.trade, 26 MayResults

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

Tata Projects reports standalone net loss of Rs 450.60 crore in the June 2026 quarter

Business Standard, 18 JulResults

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

COSYN Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 09 Oct

Happy Mother's Day!

Luxembourg Times, 11 Jun

Watch Items

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

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Valuation

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

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

4 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑