CyberTech Systems and Software Limited

Technology — Information Technology Services · NSE

₹139.86+₹7.10 (+5.35%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

CyberTech Systems and Software Limited provides geospatial, networking, and enterprise information technology solutions in India and the United States. The company provides SAP, Geographic information Systems (GIS), cloud, and BCP solutions.

IndustryInformation Technology Services

SectorTechnology

Employees525

Annual revenue₹237 Cr

How does it make money?

Turns over ₹237 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 525 employees supports ₹45.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹45.2 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 18.6% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +35% while net margin moved +4% 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+35%

Margin effect+4%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.74 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

72/ 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

13.7x

3Y Median

19.1x

40 monthly readings · mean 19.0x · range 8.8x–32.7x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 19.1x. 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 17% below the peer median of 16.5x.

vs. its own history

Cheap

19.1x median over 40 months · -28%

vs. sector peers

Fair

16.5x median of 4 peers · -17%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.9x

PEG

1.15

What's Good / What's Bad

🟢 What's Going Well1

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

🔴Debt has risen sharplyFinancial
Total debt is up 363% over 3 years, from ₹2 Cr to ₹8 Cr.
🔴High leverageFinancial
Debt/Equity of 3.89x — earnings must service borrowings before shareholders see anything.
🟡Margins are compressingFinancial
EBITDA margin is down 4.5 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 28% 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.
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 22.0% to 17.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.89x. Interest is payable whether or not the business has a good year.
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 8% a year✓ 10.4% CAGR
Latest reported year was 17.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

₹425 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.7x

Cheap

Cheap against the generic band

P/B Ratio

2.05x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.18

Profitable

Profitable on a per-share basis

ROE

14.3%

Moderate

Moderate capital efficiency

ROCE

18.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.89x

High

High leverage

Revenue Growth (YoY)

17.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.86%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.1%

Average

Average margins

Net Margin

12.8%

Good

Strong bottom-line conversion

Current Ratio

4.03

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.74

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

136.5 / 136.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

51.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹176 Cr	₹222 Cr	₹236 Cr	₹237 Cr	+10.4%
EBITDA	₹39 Cr	₹38 Cr	₹51 Cr	₹41 Cr	+2.2%
EBITDA Margin	22.0%	17.1%	21.4%	17.5%	—
PAT (Net Profit)	₹22 Cr	₹23 Cr	₹35 Cr	₹30 Cr	+11.9%
EPS	₹7.62	₹7.75	₹11.2	₹9.75	+8.6%
ROE	13.5%	10.4%	14.1%	14.3%	—
ROCE	19.5%	14.4%	18.5%	18.6%	—
Total Debt	₹2 Cr	₹8 Cr	₹8 Cr	₹8 Cr	+66.7%
Free Cash Flow	₹25 Cr	₹36 Cr	₹36 Cr	₹8 Cr	-32.7%

🟢 Revenue has grown at 10.4% a year over 3 years.

🟢 EBITDA has grown at 2.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 22.0% to 17.5% over 3 years (-4.5 pts).

🟢 PAT (Net Profit) has grown at 11.9% a year over 3 years.

🟢 EPS has grown at 8.6% a year over 3 years.

🟡 ROE has held roughly flat at 14.3% over 3 years.

🟡 ROCE has held roughly flat at 18.6% over 3 years.

🔴 Total Debt has grown at 66.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 32.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹279 Cr

Total Liabilities

₹67 Cr

Cash & Equivalents

₹21 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.3%

Corporate Actions

Dividend Rate

₹4

Ex-Dividend Date

21 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

3 positive1 mixed2 general

CYBERTECH SYSTEMS & SOFTWARE Share Price

Upstox, 16 Oct

CyberTech Systems And Software Ltd. Lower Circuit: Price and Key Data

Univest, 01 Oct

Cybertech Systems sets Sept 28 for 31st AGM; ₹4 final dividend

scanx.trade, 28 SeptCapital return

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

Cybertech Systems And Software Buyback 2026 Record Date, Price & Ratio Details

IPO Watch, 15 MayCapital return

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

CyberTech Systems and Software Limited announces an Equity Buyback for 850,000 shares, representing 2.73% for INR 144.5 million.

marketscreener.com, 13 MayCapital return

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

Cybertech Systems and Software Share Price Target 2026: Rs 30 Analyst Forecast

Univest, 18 JunAnalyst view

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

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health · 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. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑