Equippp Social Impact Technologies Limited

Technology — Information Technology Services · NSE

₹20.80+₹0.67 (+3.33%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Equippp Social Impact Technologies Limited provides IT solutions and services in India.

IndustryInformation Technology Services

SectorTechnology

Employees240

Annual revenue₹45 Cr

How does it make money?

Turns over ₹45 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 240 employees supports ₹18.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹18.7 lakh

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 9.6% 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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +2884% while net margin moved -78% 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+2884%

Margin effect-78%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.47 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

58/ 100

Average

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

Valuation

46/ 100

Fair

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

122.4x

3Y Median

689.7x

40 monthly readings · mean 610.5x · range 115.6x–1165.0x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 82% below its 3y median of 689.7x. 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 639% above the peer median of 16.5x.

vs. its own history

Cheap

689.7x median over 40 months · -82%

vs. sector peers

Expensive

16.5x median of 4 peers · +639%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

66.6x

PEG

1.39

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 3.8% to 19.2%.
Return on capital is rising
ROCE has improved from 4.0% to 9.6%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 704% over 3 years, from ₹1 Cr to ₹11 Cr.
🔴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 31.3 points, from 38.7% to 7.4%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 82% 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.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 38.7% to 7.4%. 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 3.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 639% above the peer median. That premium needs a reason that persists, or it closes.
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 158% a year✓ 210.2% 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 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 9.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹214 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

122.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

21.40x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.17

Profitable

Profitable on a per-share basis

ROE

19.2%

Strong

Strong capital efficiency

ROCE

9.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.74x

Moderate

Moderate leverage

Revenue Growth (YoY)

33.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

210.5%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.8%

Weak

Thin margins leave little room for error

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

3.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

22.1 / 22.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹7 Cr	₹45 Cr	+210.2%
EBITDA	₹1 Cr	₹0 Cr	₹2 Cr	₹3 Cr	+78.3%
EBITDA Margin	38.7%	4.9%	27.4%	7.4%	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	₹1 Cr	₹2 Cr	+88.3%
EPS	₹0.03	₹-0.03	₹0.06	₹0.18	+81.7%
ROE	3.8%	-4.2%	6.7%	19.2%	—
ROCE	4.0%	-1.9%	7.5%	9.6%	—
Total Debt	₹1 Cr	₹2 Cr	₹9 Cr	₹11 Cr	+100.3%
Free Cash Flow	-₹0 Cr	-₹1 Cr	-₹2 Cr	-₹1 Cr	—

🟢 Revenue has grown at 210.2% a year over 3 years.

🟢 EBITDA has grown at 78.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 38.7% to 7.4% over 3 years (-31.3 pts).

🟢 PAT (Net Profit) has grown at 88.3% a year over 3 years.

🟢 EPS has grown at 81.7% a year over 3 years.

🟢 ROE has risen from 3.8% to 19.2% over 3 years (+15.4 pts).

🟢 ROCE has risen from 4.0% to 9.6% over 3 years (+5.6 pts).

🔴 Total Debt has grown at 100.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹18 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.3%

Corporate Actions

Ex-Dividend Date

19 Sept 2008

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

1 mixed5 general

Equippp Social Impact Technologies Lower Circuit Today

Univest, 16 Oct

Equippp Social Impact Technologies (EQUIPPP.NS) Eases to ₹22.38 as Stock Clings to ₹21.26 Support Zone - Merger Arbitrage

https://www.siam.in/, 07 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Equippp Social Impact passes all six resolutions at 34th AGM

scanx.trade, 03 Oct

Equippp Social Impact Technologies Upper Circuit Today

Univest, 09 Oct

Equippp Social Impact Technologies vs Nifty 50: Returns Compared

Univest, 17 Sept

Equippp approves MoU for 119 foundations, sets up PMO

scanx.trade, 21 Jul

Watch Items

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

DalalBaazaar Thesis

StrongProfitability

MiddlingFinancial Health · Growth

WeakBusiness Quality · 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.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑