Datamatics Global Services Limited

Technology — Information Technology Services · NSE

₹795.00+₹2.00 (+0.25%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. 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, 7:44 pm

Understanding the Business

Company site ↗

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

What does this company do?

Datamatics Global Services Limited, a digital technologies, operations, and experiences company, provides intelligent solutions for data-driven businesses in the United States, the United Kingdom, Europe, and internationally.

IndustryInformation Technology Services

SectorTechnology

Employees15,700

Annual revenue₹1,987 Cr

How does it make money?

Turns over ₹1,987 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 15,700 employees supports ₹12.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹12.7 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 15.5% 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 is the outlook?

1 analysts covering the stock expect revenue to change and earnings to grow about 5.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. earnings growth+5.3%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +36% while net margin moved -25% 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+36%

Margin effect-25%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 10.8% is steady
✗ Profit CAGR of only 0.9%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

45/ 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

21.7x

3Y Median

20.3x

40 monthly readings · mean 20.9x · range 16.6x–29.2x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 20.3x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 31% above the peer median of 16.5x.

vs. its own history

Fair

20.3x median over 40 months · +7%

vs. sector peers

Expensive

16.5x median of 4 peers · +31%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.8x

PEG

23.50

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 18.6% to 20.4% over 3 years.
Cash generation is improving
Free cash flow is up 214% 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 Attention2

Return on equity is falling
ROE has dropped from 18.0% to 12.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.4% to 15.5% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 939% over 3 years, from ₹21 Cr to ₹221 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 18.6% to 20.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹284 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 31% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 18.0% to 12.6%. 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

1Revenue growth stays above 8% a year✓ 10.8% CAGR
Latest reported year was 9.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹284 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 15.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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 · 6 neutral · 0 weak

Market Cap

₹4,699 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.7x

Fair

Fairly valued against the generic band

P/B Ratio

3.04x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹36.58

Profitable

Profitable on a per-share basis

ROE

12.6%

Moderate

Moderate capital efficiency

ROCE

15.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

9.9%

Modest

Modest growth

Profit Growth (YoY)

43.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.63%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹284 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

16.1x

Improving

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

Operating Margin

15.3%

Good

Healthy core-business profitability

Net Margin

10.6%

Good

Strong bottom-line conversion

Current Ratio

1.99

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

777.9 / 793.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,459 Cr	₹1,550 Cr	₹1,723 Cr	₹1,987 Cr	+10.8%
EBITDA	₹271 Cr	₹264 Cr	₹256 Cr	₹405 Cr	+14.3%
EBITDA Margin	18.6%	17.0%	14.8%	20.4%	—
PAT (Net Profit)	₹189 Cr	₹198 Cr	₹205 Cr	₹194 Cr	+0.9%
EPS	₹32.05	₹33.6	₹34.71	₹32.86	+0.8%
ROE	18.0%	16.1%	15.0%	12.6%	—
ROCE	22.4%	19.9%	14.6%	15.5%	—
Total Debt	₹21 Cr	₹17 Cr	₹190 Cr	₹221 Cr	+118.2%
Free Cash Flow	₹91 Cr	₹168 Cr	₹188 Cr	₹284 Cr	+46.4%

🟢 Revenue has grown at 10.8% a year over 3 years.

🟢 EBITDA has grown at 14.3% a year over 3 years.

🟢 EBITDA Margin has risen from 18.6% to 20.4% over 3 years (+1.8 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.9% a year).

🟡 EPS has been broadly flat over 3 years (0.8% a year).

🔴 ROE has fallen from 18.0% to 12.6% over 3 years (-5.4 pts).

🔴 ROCE has fallen from 22.4% to 15.5% over 3 years (-6.9 pts).

🔴 Total Debt has grown at 118.2% a year over 3 years.

🟢 Free Cash Flow has grown at 46.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,355 Cr

Total Liabilities

₹819 Cr

Cash & Equivalents

₹141 Cr

Operating Cash Flow

₹324 Cr

Capex

-₹40 Cr

Shareholding (proxy)

Institutional Holding

0.7%

Insider Holding

80.3%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹920

+15.7% vs CMP

Target Range

₹920 – ₹920

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

Datamatics Global Services Appoints Dr. Rajesh Gharpure as New COO

Whalesbook, 15 Oct

Datamatics appoints Rajesh Gharpure as President and COO to boost AI growth

scanx.trade, 16 Oct

Datamatics Global Services (NSEI:DATAMATICS) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 AugAnalyst view

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

Datamatics Global Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Datamatics Global Services vs Mastek vs Latent View Analytics

Univest, 07 Oct

Datamatics Reports Q1 Revenue Of ₹513.9 Crore, Net Profit Jumps To ₹72.3 Crore

Sahi, 05 AugResults

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

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability · Valuation · Risk

Points for each in the Score ↑

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

All 5 tripwires holding · see Key things to watch ↑