DiGiSPICE Technologies Limited

Financial Services — Financial Conglomerates · NSE

₹15.65−₹0.18 (−1.14%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

DiGiSPICE Technologies Limited engages in the business of financial technologies services through tech- enabled hyper local payments network platforms in India.

IndustryFinancial Conglomerates

SectorFinancial Services

Annual revenue₹465 Cr

How does it make money?

Turns over ₹465 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +8% while net margin moved -186% 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+8%

Margin effect-186%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 2.5% — barely ahead of inflation
✗ Latest-year revenue growth of -8.0% is below the longer-term trend — momentum is fading
✗ Profit fell 3.4% in the latest year

Quality vs. Valuation

Company Quality

56/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

16.8x

2Y Median

41.4x

28 monthly readings · mean 42.4x · range 18.5x–71.3x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 59% below its 2y median of 41.4x. 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 is priced broadly in line with the peer median of 17.0x.

vs. its own history

Cheap

41.4x median over 28 months · -59%

vs. sector peers

Fair

17.0x median of 4 peers · -1%

vs. generic bands

Fair

15x–35x

EV/EBITDA

5.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 7.3% to 9.9% over 3 years.
Return on equity is rising
ROE has improved from -8.9% to 8.1%.
Return on capital is rising
ROCE has improved from -2.4% to 13.0%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.3% to 9.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 59% 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.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 2.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 8%✓ 9.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✓ 8.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 4% a year✗ 2.5% CAGR
Latest reported year was -8.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 41.4x✓ 16.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

3 good · 6 neutral · 2 weak

Market Cap

₹367 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.64x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.93

Profitable

Profitable on a per-share basis

ROE

8.1%

Moderate

Moderate capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.35x

Low

Conservative leverage

Revenue Growth (YoY)

-8.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-3.4%

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

₹48 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

11.2%

Average

Average margins

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

1.17

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

15.7 / 16.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹432 Cr	₹439 Cr	₹448 Cr	₹465 Cr	+2.5%
EBITDA	₹32 Cr	₹43 Cr	₹22 Cr	₹46 Cr	+13.4%
EBITDA Margin	7.3%	9.8%	4.9%	9.9%	—
PAT (Net Profit)	-₹21 Cr	₹12 Cr	-₹39 Cr	₹19 Cr	—
EPS	₹-0.89	₹0.51	₹-1.68	₹0.81	—
ROE	-8.9%	4.8%	-18.4%	8.1%	—
ROCE	-2.4%	24.4%	-10.3%	13.0%	—
Total Debt	₹84 Cr	₹26 Cr	₹79 Cr	₹84 Cr	-0.0%
Free Cash Flow	-₹6 Cr	₹33 Cr	₹3 Cr	₹48 Cr	—

🟢 Revenue has grown at 2.5% a year over 3 years.

🟢 EBITDA has grown at 13.4% a year over 3 years.

🟢 EBITDA Margin has risen from 7.3% to 9.9% over 3 years (+2.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹21 Cr to ₹19 Cr.

🟢 EPS has turned positive, from ₹-0.89 to ₹0.81.

🟢 ROE has risen from -8.9% to 8.1% over 3 years (+17.0 pts).

🟢 ROCE has risen from -2.4% to 13.0% over 3 years (+15.4 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.0% a year).

🟢 Free Cash Flow has turned positive, from -₹6 Cr to ₹48 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹806 Cr

Total Liabilities

₹570 Cr

Cash & Equivalents

₹205 Cr

Operating Cash Flow

₹64 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.3%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

4 mixed2 general

DigiSpice Technologies Ltd is Rated Sell

MarketsMojo, 15 Oct

DigiSpice Technologies closes trading window for Q2FY27 results

scanx.trade, 25 SeptResults

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

DiGiSPICE Technologies sets July 13 meeting for merger approval

scanx.trade, 11 JunM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Why Is DiGiSPICE Technologies Share Price Falling Key Reasons 2026

Univest, 22 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Digispice Technologies NCLT hearing for merger set for September 17

scanx.trade, 06 AugM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

DiGiSPICE Technologies Share Price Forecast to 2030

Univest, 16 Jul

Watch Items

Revenue growth is negative (-8.0%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability

WeakGrowth · 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 of 4 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑