Dev Information Technology Limited

Technology — Information Technology Services · NSE

₹19.55−₹0.05 (−0.26%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dev Information Technology Limited provides information technology enabled services in India, Europe, and internationally.

IndustryInformation Technology Services

SectorTechnology

Employees1,083

Annual revenue₹188 Cr

How does it make money?

Turns over ₹188 Cr a year. Of every ₹100 of sales, about ₹40 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 1,083 employees supports ₹17.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹17.3 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 75.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 69.3% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +51% while net margin moved +458% 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+51%

Margin effect+458%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.31 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

80/ 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

1.5x

3Y Median

26.7x

40 monthly readings · mean 22.8x · range 1.5x–40.1x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 94% below its 3y median of 26.7x. 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 91% below the peer median of 16.5x.

vs. its own history

Cheap

26.7x median over 40 months · -94%

vs. sector peers

Cheap

16.5x median of 4 peers · -91%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

17.0x

PEG

0.01

What's Good / What's Bad

🟢 What's Going Well5

Return on equity is rising
ROE has improved from 21.6% to 69.3%.
Return on capital is rising
ROCE has improved from 26.8% to 75.5%.
High return on capital employed
ROCE of 75.5% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.28x 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

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 320% over 3 years, from ₹7 Cr to ₹31 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 160% against revenue up 51% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 2.3 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 75.5% 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 94% 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 91% 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 6.5% to 4.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 160% against revenue up 51%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 14.8% CAGR
Latest reported year was 2.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹16 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 73%✓ 75.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

6 good · 3 neutral · 2 weak

Market Cap

₹111 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.5x

Cheap

Cheap against the generic band

P/B Ratio

1.02x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹13.24

Profitable

Profitable on a per-share basis

ROE

69.3%

Strong

Strong capital efficiency

ROCE

75.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

2.7%

Modest

Modest growth

Profit Growth (YoY)

-3.2%

Falling

Profits are shrinking

Dividend Yield

0.51%

Modest

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

Free Cash Flow

-₹16 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.0%

Average

Average margins

Net Margin

39.7%

Good

Strong bottom-line conversion

Current Ratio

1.79

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.31

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

21.1 / 23.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹124 Cr	₹163 Cr	₹170 Cr	₹188 Cr	+14.8%
EBITDA	₹8 Cr	₹15 Cr	₹12 Cr	₹8 Cr	-0.5%
EBITDA Margin	6.5%	9.3%	6.8%	4.3%	—
PAT (Net Profit)	₹9 Cr	₹9 Cr	₹15 Cr	₹76 Cr	+103.6%
EPS	₹1.62	₹1.67	₹2.64	₹13.25	+101.3%
ROE	21.6%	16.7%	21.7%	69.3%	—
ROCE	26.8%	21.3%	25.5%	75.5%	—
Total Debt	₹7 Cr	₹15 Cr	₹20 Cr	₹31 Cr	+61.3%
Free Cash Flow	-₹7 Cr	-₹3 Cr	-₹13 Cr	-₹16 Cr	—

🟢 Revenue has grown at 14.8% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (-0.5% a year).

🔴 EBITDA Margin has fallen from 6.5% to 4.3% over 3 years (-2.3 pts).

🟢 PAT (Net Profit) has grown at 103.6% a year over 3 years.

🟢 EPS has grown at 101.3% a year over 3 years.

🟢 ROE has risen from 21.6% to 69.3% over 3 years (+47.7 pts).

🟢 ROCE has risen from 26.8% to 75.5% over 3 years (+48.7 pts).

🔴 Total Debt has grown at 61.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹189 Cr

Total Liabilities

₹80 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.1%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

23 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

6 general

Dev Information Technology Share Price Forecast to 2030

Univest, 16 Jul

Small-cap IT stock Dev InfoTech jumps 14% despite weak market; what's the latest buzz?

Upstox, 23 Apr

Xduce Technologies buys additional 9% stake in Dev Information Technology from promoters

Moneycontrol.com, 04 Mar

Compare Company

Equitymaster, 10 Oct

DEVIT Share Price Near 52-Week Low: Sector and Peer View

Univest, 09 Oct

Dev Information Technology approves 6.2 lakh ESOP allotments

scanx.trade, 11 Sept

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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

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

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑