Elnet Technologies Limited

Real Estate — Real Estate - Diversified · BSE

₹297.10+₹1.20 (+0.41%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Reasonable but unspectacular business quality, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:02 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Elnet Technologies Limited engages in the provision of development and maintenance services for integrated software technology parks and business process outsourcing industries in India.

IndustryReal Estate - Diversified

SectorReal Estate

Employees10

Annual revenue₹20 Cr

How does it make money?

Turns over ₹20 Cr a year. Of every ₹100 of sales, about ₹101 reaches shareholders as profit, with ₹140 left at the operating level before interest, tax and depreciation. Each of its 10 employees supports ₹1.98 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin140.0%

Net margin101.3%

Revenue / employee₹1.98 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

DLF LIMITEDP/E 36.6x · ROE 10.3%

GODREJ PROPERTIES LTDP/E 30.2x · ROE 8.4%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

What is its competitive advantage?Little sign of one

Returns on capital of 14.2% 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.

ROCE14.2%

ROE11.4%

Peer median ROE10.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -2% while net margin moved +50% 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-2%

Margin effect+50%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.7% a year
• Profit CAGR of 13.6%

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

88/ 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

5.9x

3Y Median

8.1x

40 monthly readings · mean 8.2x · range 5.9x–11.0x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 27% below its 3y median of 8.1x. 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 80% below the peer median of 30.2x.

vs. its own history

Cheap

8.1x median over 40 months · -27%

vs. sector peers

Cheap

30.2x median of 3 peers · -80%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

5.9x

P/B

0.68x

EV/EBITDA

4.1x

PEG

0.43

Dividend Yield

0.67%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 107.4% to 140.0% over 3 years.
Cash generation is improving
Free cash flow is up 163% over 3 years.
Valuation below its historical average
At 5.9x the stock trades 27% below its own median of 8.1x.
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

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 2.43x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 107.4% to 140.0%. 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 27% 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 80% 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?

Leverage amplifies any setback
Debt/Equity of 2.43x. Interest is payable whether or not the business has a good year.
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 138%✓ 140.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹32 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 11%✓ 14.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 8.1x✓ 5.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

5 good · 5 neutral · 1 weak

Market Cap

₹119 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.9x

Cheap

Cheap against the generic band

P/B Ratio

0.68x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹50.26

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

14.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.43x

High

High leverage

Revenue Growth (YoY)

10.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.2%

Modest

Slow profit growth

Dividend Yield

0.67%

Modest

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

Free Cash Flow

₹32 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹297.1

Operating Margin

59.8%

Good

Healthy core-business profitability

Net Margin

78.5%

Good

Strong bottom-line conversion

Current Ratio

8.38

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

301.4 / 308.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹21 Cr	₹18 Cr	₹20 Cr	-0.7%
EBITDA	₹22 Cr	₹26 Cr	₹25 Cr	₹28 Cr	+8.5%
EBITDA Margin	107.4%	121.6%	135.6%	140.0%	—
PAT (Net Profit)	₹14 Cr	₹17 Cr	₹18 Cr	₹20 Cr	+13.6%
EPS	₹34.24	₹43.73	₹43.88	₹50.23	+13.6%
ROE	11.2%	12.6%	11.2%	11.4%	—
ROCE	14.7%	16.6%	14.6%	14.2%	—
Total Debt	₹4 Cr	₹4 Cr	₹4 Cr	₹4 Cr	+0.0%
Free Cash Flow	₹12 Cr	-₹63 Cr	₹3 Cr	₹32 Cr	+38.0%

🟡 Revenue has been broadly flat over 3 years (-0.7% a year).

🟢 EBITDA has grown at 8.5% a year over 3 years.

🟢 EBITDA Margin has risen from 107.4% to 140.0% over 3 years (+32.6 pts).

🟢 PAT (Net Profit) has grown at 13.6% a year over 3 years.

🟢 EPS has grown at 13.6% a year over 3 years.

🟡 ROE has held roughly flat at 11.4% over 3 years.

🟡 ROCE has held roughly flat at 14.2% over 3 years.

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

🟢 Free Cash Flow has grown at 38.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹196 Cr

Total Liabilities

₹20 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹34 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.1%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

10 Sept 2026

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 positive1 mixed4 general

Elnet Technologies Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Elnet Technologies Q1 FY27 Results: Revenue Rs 6 Cr, PAT Rs 5 Cr

Univest, 17 AugResults

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

Elnet Technologies Q1FY27 net profit rises 0.1% to ₹5.03 crore

scanx.trade, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Compare ELNET TECH. with

Equitymaster, 11 Oct

Zee Entertainment, TVS Srichakra, Ganesha Ecosphere, Elnet Tech Dividends: Last Day To Buy Shares To Qualify

NDTV Profit, 09 Sept

Elnet Technologies Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 09 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong14.5/20

🟢Financial HealthStrong13.9/20

🔴GrowthWeak7.8/20

🟢ProfitabilityStrong10.9/15

🟢ValuationAttractive13.2/15

🟡RiskModerate5.3/10

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 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 138%140.0%
✓Free cash flow remains positive₹32 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 11%14.2%
✓Valuation vs its own median of 8.1x5.9x today