eMudhra Limited

Technology — Software - Application · NSE

₹551.10+₹16.20 (+3.03%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

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

In simple words: Reasonable but unspectacular business quality, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

eMudhra Limited provides trust and enterprise solutions to individuals and organizations in India, North America, Europe, the Middle East, Africa, and the Asia Pacific.

IndustrySoftware - Application

SectorTechnology

Employees604

Annual revenue₹702 Cr

How does it make money?

Turns over ₹702 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 604 employees supports ₹1.16 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.16 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. 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?Little sign of one

Returns on capital of 12.9% 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.

Peer median ROE32.0%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 24.1% and earnings to grow about 28.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.1%

Est. earnings growth+28.5%

Analysts1

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 +182% while net margin moved -38% 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+182%

Margin effect-38%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.16 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

44/ 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.

Historical Valuation

Current P/E

39.6x

3Y Median

66.9x

40 monthly readings · mean 69.2x · range 36.6x–109.5x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 3y median of 66.9x. 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 140% above the peer median of 16.5x.

vs. its own history

Cheap

66.9x median over 40 months · -41%

vs. sector peers

Expensive

16.5x median of 4 peers · +140%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.2x

PEG

1.94

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.8% to 11.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.0% to 12.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.15x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 13.6 points, from 37.2% to 23.6%.
🔴Inventory building faster than salesFinancial
Inventory up 277% against revenue up 182% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹53 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 41% 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.
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 37.2% to 23.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.15x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 140% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 15.8% to 11.8%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 31% a year✓ 41.3% CAGR
Latest reported year was 29.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 22%✓ 23.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹53 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹4,521 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.6x

Fair

Fairly valued against the generic band

P/B Ratio

4.96x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.9

Profitable

Profitable on a per-share basis

ROE

11.8%

Moderate

Moderate capital efficiency

ROCE

12.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.15x

High

High leverage

Revenue Growth (YoY)

29.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

29.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.23%

Modest

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

Free Cash Flow

-₹53 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

26.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

19.7%

Good

Healthy core-business profitability

Net Margin

15.4%

Good

Strong bottom-line conversion

Current Ratio

2.76

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

601.3 / 564.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

25.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹249 Cr	₹373 Cr	₹519 Cr	₹702 Cr	+41.3%
EBITDA	₹92 Cr	₹121 Cr	₹129 Cr	₹165 Cr	+21.4%
EBITDA Margin	37.2%	32.5%	24.8%	23.6%	—
PAT (Net Profit)	₹62 Cr	₹75 Cr	₹85 Cr	₹108 Cr	+20.5%
EPS	₹8.01	₹9.5	₹10.22	₹13.02	+17.6%
ROE	15.8%	11.4%	11.4%	11.8%	—
ROCE	19.0%	14.2%	14.1%	12.9%	—
Total Debt	₹25 Cr	₹8 Cr	—	₹29 Cr	+4.4%
Free Cash Flow	-₹29 Cr	-₹1 Cr	₹18 Cr	-₹53 Cr	—

🟢 Revenue has grown at 41.3% a year over 3 years.

🟢 EBITDA has grown at 21.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 37.2% to 23.6% over 3 years (-13.6 pts).

🟢 PAT (Net Profit) has grown at 20.5% a year over 3 years.

🟢 EPS has grown at 17.6% a year over 3 years.

🔴 ROE has fallen from 15.8% to 11.8% over 3 years (-3.9 pts).

🔴 ROCE has fallen from 19.0% to 12.9% over 3 years (-6.1 pts).

🔴 Total Debt has grown at 4.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,213 Cr

Total Liabilities

₹301 Cr

Cash & Equivalents

₹58 Cr

Operating Cash Flow

₹133 Cr

Capex

-₹185 Cr

Shareholding (proxy)

Institutional Holding

9.5%

Insider Holding

67.6%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

18 Jun 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹702

+27.4% vs CMP

Target Range

₹702 – ₹702

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

4 mixed2 general

Emudhra Share Price

Upstox, 16 Oct

EMUDHRA Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

eMudhra share price jumps 12% today, extends gains for second session | What's behind the rally?

Livemint, 16 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

eMudhra: Best Stock in Its Sector? Key Metrics

Univest, 25 Sept

eMudhra shares surge 20% in early deals; here's why

Business Today, 15 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

eMudhra Limited (NSE:EMUDHRA) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Simply Wall Street, 03 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

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

StrongBusiness Quality

MiddlingFinancial Health · Growth · Profitability · Valuation · 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. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑