Doctrack Solutions Limited

Sector n/a · NSE

₹104.70−₹5.50 (−4.99%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

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

How does it make money?

Turns over ₹42 Cr a year. Of every ₹100 of sales, about ₹-5 reaches shareholders as profit, with ₹-1 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of -0.9% 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.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +236% while net margin moved -165% 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+236%

Margin effect-165%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 90.7 points over the period

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

—/ 100

Unknown

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

Not enough data to separate business quality from valuation for this company.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 66.5% to -24.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.1% to -0.9% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 5 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 52% over 3 years, from ₹5 Cr to ₹7 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.1x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 15.5 points, from 14.3% to -1.3%.
🔴Inventory building faster than salesFinancial
Inventory up 346% against revenue up 236% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.2x to -0.1x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.85 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 14.3% to -1.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 66.5% to -24.3%. 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.
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
5 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 37% a year✓ 49.8% CAGR
Latest reported year was 4.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -3%✓ -1.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ -0.1x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -0.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 7 neutral · 3 weak

Market Cap

₹33 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

-24.3%

Weak

Weak capital efficiency

ROCE

-0.9%

Weak

Low return on total capital employed

Debt/Equity

0.88x

Moderate

Moderate leverage

Revenue Growth (YoY)

4.4%

Modest

Modest growth

Profit Growth (YoY)

-1180.2%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

13.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

-4.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.85

Adequate

Adequate, but no real cushion

Technical Snapshot

SMA 20 / SMA 50

24.7 / 29.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.4

Oversold zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹12 Cr	₹33 Cr	₹40 Cr	₹42 Cr	+49.8%
EBITDA	₹2 Cr	₹4 Cr	₹2 Cr	-₹1 Cr	—
EBITDA Margin	14.3%	11.5%	5.2%	-1.3%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹0 Cr	-₹2 Cr	—
EPS	₹2.93	₹6.2	₹0.6	—	—
ROE	66.5%	56.1%	1.8%	-24.3%	—
ROCE	34.1%	44.3%	11.8%	-0.9%	—
Total Debt	₹5 Cr	₹8 Cr	₹9 Cr	₹7 Cr	+15.1%
Free Cash Flow	-₹2 Cr	-₹2 Cr	-₹3 Cr	₹3 Cr	—

🟢 Revenue has grown at 49.8% a year over 3 years.

🔴 EBITDA has turned negative, from ₹2 Cr to -₹1 Cr.

🔴 EBITDA Margin has fallen from 14.3% to -1.3% over 3 years (-15.5 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹2 Cr.

🔴 ROE has fallen from 66.5% to -24.3% over 3 years (-90.7 pts).

🔴 ROCE has fallen from 34.1% to -0.9% over 3 years (-35.0 pts).

🔴 Total Debt has grown at 15.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹3 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹39 Cr

Total Liabilities

₹31 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹4 Cr

Recent News

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Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

StrongGrowth

MiddlingFinancial Health · Valuation

WeakBusiness Quality · 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. 5 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑