Edvenswa Enterprises Limited

Industrials — Electrical Equipment & Parts · BSE

₹23.00+₹0.05 (+0.22%)

DalalBaazaar Score

47 / 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, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Edvenswa Enterprises Limited, together with its subsidiaries, provides information technology consultancy and software development services in India.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees28

Annual revenue₹133 Cr

How does it make money?

Turns over ₹133 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 28 employees supports ₹4.76 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.0%

Net margin6.2%

Revenue / employee₹4.76 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Little sign of one

Returns on capital of 3.9% 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.

ROCE3.9%

ROE5.9%

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +159% while net margin moved -44% 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+159%

Margin effect-44%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 3.9% is below 10% — capital is not working hard
✗ ROCE has fallen by 10.6 points — returns are eroding
✗ EBITDA margin of 5.0% is thin — little cushion if costs rise
✗ Net margin of 3.4% is slim
• Revenue has compounded at 37.4% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

69/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

15.3x

3Y Median

13.0x

40 monthly readings · mean 13.9x · range 5.2x–34.5x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 18% above its 3y median of 13.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 83% below the peer median of 88.8x.

vs. its own history

Fair

13.0x median over 40 months · +18%

vs. sector peers

Cheap

88.8x median of 3 peers · -83%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.3x

P/B

0.49x

EV/EBITDA

8.6x

PEG

1.18

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 13.2% to 5.0% over 3 years.
Debt is rising
Total debt is up 414% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 13.3% to 5.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.5% to 3.9% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 414% over 3 years, from ₹1 Cr to ₹3 Cr.
🔴High leverageFinancial
Debt/Equity of 2.04x — 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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.2 points, from 13.2% to 5.0%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 45% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 83% 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 13.2% to 5.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.04x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 13.3% to 5.9%. 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.
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 28% a year✓ 37.4% CAGR
Latest reported year was -10.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹20 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 3.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹67 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.3x

Fair

Fairly valued against the generic band

P/B Ratio

0.49x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.5

Profitable

Profitable on a per-share basis

ROE

5.9%

Weak

Weak capital efficiency

ROCE

3.9%

Weak

Low return on total capital employed

Debt/Equity

2.04x

High

High leverage

Revenue Growth (YoY)

-10.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-89.3%

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

-₹20 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹23

Operating Margin

1.3%

Weak

Thin margins leave little room for error

Net Margin

3.4%

Average

Average bottom-line conversion

Current Ratio

13.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

22.4 / 21.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹51 Cr	₹84 Cr	₹119 Cr	₹133 Cr	+37.4%
EBITDA	₹7 Cr	₹12 Cr	₹17 Cr	₹7 Cr	-0.5%
EBITDA Margin	13.2%	14.5%	14.4%	5.0%	—
PAT (Net Profit)	₹6 Cr	₹7 Cr	₹11 Cr	₹8 Cr	+13.0%
EPS	₹2.75	₹3.76	₹3.85	₹2.85	+1.2%
ROE	13.3%	14.0%	8.8%	5.9%	—
ROCE	14.5%	20.5%	11.3%	3.9%	—
Total Debt	₹1 Cr	₹2 Cr	₹3 Cr	₹3 Cr	+72.6%
Free Cash Flow	-₹1 Cr	-₹12 Cr	-₹42 Cr	-₹20 Cr	—

🟢 Revenue has grown at 37.4% a year over 3 years.

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

🔴 EBITDA Margin has fallen from 13.2% to 5.0% over 3 years (-8.2 pts).

🟢 PAT (Net Profit) has grown at 13.0% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (1.2% a year).

🔴 ROE has fallen from 13.3% to 5.9% over 3 years (-7.4 pts).

🔴 ROCE has fallen from 14.5% to 3.9% over 3 years (-10.6 pts).

🔴 Total Debt has grown at 72.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹153 Cr

Total Liabilities

₹12 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.4%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 mixed1 negative4 general

Edvenswa Enterprises Signs Armour1X MoU; Shares Fall 0.85%

HDFC Sky, 11 SeptPrice 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.

Edvenswa Enterprises submits revised FY26 annual report

scanx.trade, 12 Sept

Edvenswa Enterprises consolidated net profit falls 90% in Q1FY27

scanx.trade, 04 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Edvenswa Enterprises (BSE:517170) - Stock Analysis

Simply Wall Street, 26 Nov

Edvenswa Enterprises signs MoU with Armour1X LLP, Hyderabad

Business Standard, 11 Sept

CRSL Stock Price and Chart — NSE:CRSL

TradingView, 17 Aug

Watch Items

Revenue growth is negative (-10.4%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟡Financial HealthAdequate9.9/20

🟡GrowthModest11.6/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive10.6/15

🔴RiskHigh4/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 28% a year37.4% CAGR
✓EBITDA margin holds above 3%5.0%
✗Free cash flow remains positive-₹20 Cr
✓Debt / EBITDA stays below 2x0.4x
✗ROCE stays above 8%3.9%