DUDigital Global Limited

Sector n/a · NSE

₹72.50+₹3.25 (+4.69%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:00 pm

Understanding the Business

The 60-second version of DUDigital Global 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 ₹51 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 7.5% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +39% while net margin moved +556% 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+39%

Margin effect+556%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

61/ 100

Average

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

Valuation

18/ 100

Expensive

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.

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

43.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 8.1% to 23.9% over 3 years.
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 · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 117% over 3 years, from ₹4 Cr to ₹9 Cr.
🔴High leverageFinancial
Debt/Equity of 8.99x — earnings must service borrowings before shareholders see anything.
🔴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 1052% against revenue up 39% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.1% to 23.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Leverage amplifies any setback
Debt/Equity of 8.99x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 1052% against revenue up 39%. 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.
Several serious flags at once
4 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 9% a year✓ 11.5% CAGR
Latest reported year was 30.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 22%✓ 23.9%
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✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 7.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

2 good · 5 neutral · 4 weak

Market Cap

₹521 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

5.6%

Weak

Weak capital efficiency

ROCE

7.5%

Weak

Low return on total capital employed

Debt/Equity

8.99x

High

High leverage

Revenue Growth (YoY)

30.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

67.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

89.2%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

11.2%

Good

Strong bottom-line conversion

Current Ratio

6.99

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

20.9 / 23.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

63.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹37 Cr	₹25 Cr	₹39 Cr	₹51 Cr	+11.5%
EBITDA	₹3 Cr	₹6 Cr	₹16 Cr	₹12 Cr	+60.0%
EBITDA Margin	8.1%	25.7%	41.5%	23.9%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹3 Cr	₹6 Cr	+108.7%
EPS	₹0.11	₹0.16	₹0.49	—	—
ROE	2.8%	1.3%	4.0%	5.6%	—
ROCE	5.9%	3.7%	8.1%	7.5%	—
Total Debt	₹4 Cr	₹11 Cr	₹7 Cr	₹9 Cr	+29.4%
Free Cash Flow	-₹2 Cr	-₹13 Cr	-₹24 Cr	-₹8 Cr	—

🟢 Revenue has grown at 11.5% a year over 3 years.

🟢 EBITDA has grown at 60.0% a year over 3 years.

🟢 EBITDA Margin has risen from 8.1% to 23.9% over 3 years (+15.8 pts).

🟢 PAT (Net Profit) has grown at 108.7% a year over 3 years.

🟢 ROE has risen from 2.8% to 5.6% over 3 years (+2.8 pts).

🟢 ROCE has risen from 5.9% to 7.5% over 3 years (+1.6 pts).

🔴 Total Debt has grown at 29.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹119 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹17 Cr

Recent News

6 general

DU Digital Global Share Price update with valuation view

Univest, 23 Sept

DU Digital Global Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 29 Aug

SEBI cracks whip on DU Digital Global price manipulation, bars 26 traders

Telangana Today, 02 Jan

Dudigital Global rallies 10% after bagging 3-year embassy services deal in Kuwait

Alice Blue, 22 Apr

Declining Stock and Decent Financials: Is The Market Wrong About DUDigital Global Limited (NSE:DUGLOBAL)?

Simply Wall Street, 15 Jan

DU Digital Global Stock Manipulation: SEBI Orders ₹1.85 Crore in Penalties, Disgorgement of ₹98.78 Lakh and Ban on 26 Entities

Moneylife, 01 Jan

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.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Valuation

WeakRisk

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

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑