Enfuse Solutions Limited

Sector n/a · NSE

₹184.00−₹6.95 (−3.64%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Short-term liquidity 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

The 60-second version of Enfuse Solutions 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 ₹58 Cr a year. Of every ₹100 of sales, about ₹-27 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

EBITDA margin10.2%

Net margin-26.5%

What is its competitive advantage?Little sign of one

Returns on capital of -47.8% 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.

ROCE-47.8%

ROE-78.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +123% while net margin moved -317% 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+123%

Margin effect-317%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 124.0 points over the period

Quality vs. Valuation

Company Quality

45/ 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

P/E (Trailing)

—

P/B

—

EV/EBITDA

32.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 19.3% to 10.2% over 3 years.
Debt is rising
Total debt is up 1097% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 45.7% to -78.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 60.3% to -47.8% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.98 — near-term obligations exceed near-term assets.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1097% over 3 years, from ₹2 Cr to ₹29 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -4.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹15 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.2 points, from 19.3% to 10.2%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.5x to -4.8x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.98 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 19.3% to 10.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 45.7% to -78.2%. 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.
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

1Revenue growth stays above 23% a year✓ 30.6% CAGR
Latest reported year was 33.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ -4.8x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

2 / 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 · 6 neutral · 3 weak

Market Cap

₹163 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

-78.2%

Weak

Weak capital efficiency

ROCE

-47.8%

Weak

Low return on total capital employed

Debt/Equity

1.47x

Moderate

Moderate leverage

Revenue Growth (YoY)

33.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-575.2%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹184

Gross Margin

40.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

-26.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.98

Adequate

Adequate, but no real cushion

Technical Snapshot

SMA 20 / SMA 50

151.1 / 156.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹26 Cr	₹40 Cr	₹43 Cr	₹58 Cr	+30.6%
EBITDA	₹5 Cr	₹9 Cr	₹11 Cr	₹6 Cr	+5.4%
EBITDA Margin	19.3%	22.3%	26.1%	10.2%	—
PAT (Net Profit)	₹3 Cr	₹5 Cr	₹3 Cr	-₹15 Cr	—
EPS	₹3.61	₹8.15	₹3.67	—	—
ROE	45.7%	16.8%	9.3%	-78.2%	—
ROCE	60.3%	19.2%	17.2%	-47.8%	—
Total Debt	₹2 Cr	₹9 Cr	₹25 Cr	₹29 Cr	+128.7%
Free Cash Flow	-₹0 Cr	-₹6 Cr	-₹17 Cr	₹1 Cr	—

🟢 Revenue has grown at 30.6% a year over 3 years.

🟢 EBITDA has grown at 5.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.3% to 10.2% over 3 years (-9.2 pts).

🔴 PAT (Net Profit) has turned negative, from ₹3 Cr to -₹15 Cr.

🔴 ROE has fallen from 45.7% to -78.2% over 3 years (-124.0 pts).

🔴 ROCE has fallen from 60.3% to -47.8% over 3 years (-108.1 pts).

🔴 Total Debt has grown at 128.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹55 Cr

Total Liabilities

₹35 Cr

Total Debt

₹29 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹5 Cr

Recent News

2 mixed4 general

Enfuse Solutions Share Price Falls 8.31% | Micro Cap View

Univest, 09 OctPrice 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.

Enfuse Solutions Ltd. Share Price News: Strong Price Rise

Univest, 18 AugPrice 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.

Enfuse Solutions makes positive debut on NSE SME, lists at 19.8% premium to IPO price

Moneycontrol.com, 22 Mar

Everyone Knows About Swiggy, Zomato, & Nykaa. But Here are 5 Under the Radar Ecommerce Stocks to Watch

Equitymaster, 13 Dec

ENFUSE SOLUTIONS LIMITED Share Price

Upstox, 09 Apr

Enfuse Solutions Limited Company Information

Simply Wall Street, 22 Mar

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

🔴Business QualityWeak4.7/20

🔴Financial HealthStretched8.1/20

🟢GrowthStrong18.4/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.5/15

🔴RiskHigh2.3/10

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

This thesis breaks if

✓Revenue growth stays above 23% a year30.6% CAGR
✓EBITDA margin holds above 8%10.2%
✗Debt / EBITDA falls below 3x4.9x
✗Interest cover stays above 3x-4.8x
✓Free cash flow remains positive₹1 Cr