Frog Cellsat Limited

Sector n/a · NSE

₹319.35+₹6.55 (+2.09%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

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

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, 8:27 pm

Understanding the Business

The 60-second version of Frog Cellsat 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 ₹106 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of -2.4% 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.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -20% while net margin moved -113% 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-20%

Margin effect-113%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 13.9 points over the period

Quality vs. Valuation

Company Quality

30/ 100

Weak

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.

Weak on business quality and not cheap enough to compensate.

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

EV/EBITDA

291.5x

PEG

—

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 Attention2

Return on equity is falling
ROE has dropped from 12.9% to -1.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.8% to -2.4% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 5 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 8.09x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -9.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 17.5 points, from 19.1% to 1.6%.
🔴Receivables growing faster than salesFinancial
Receivables up 40% against revenue up -20% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 33.0x to -9.2x.
🟡Inventory building faster than salesFinancial
Inventory up 33% against revenue up -20% — stock may not be moving.

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 19.1% to 1.6%. 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 7.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 40% against revenue up -20%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 12.9% to -1.0%. 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

1EBITDA margin holds above 0%✓ 1.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 7.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -9.2x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -2.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

1 good · 5 neutral · 5 weak

Market Cap

₹497 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

-1.0%

Weak

Weak capital efficiency

ROCE

-2.4%

Weak

Low return on total capital employed

Debt/Equity

8.09x

High

High leverage

Revenue Growth (YoY)

-50.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-106.6%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

49.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

-1.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.33

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

263.2 / 248.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹133 Cr	₹155 Cr	₹214 Cr	₹106 Cr	-7.3%
EBITDA	₹25 Cr	₹21 Cr	₹39 Cr	₹2 Cr	-59.2%
EBITDA Margin	19.1%	13.7%	18.1%	1.6%	—
PAT (Net Profit)	₹15 Cr	₹16 Cr	₹24 Cr	-₹2 Cr	—
EPS	₹11.41	₹10.08	₹15.22	—	—
ROE	12.9%	11.7%	14.7%	-1.0%	—
ROCE	17.8%	15.1%	20.9%	-2.4%	—
Total Debt	—	₹5 Cr	₹20 Cr	₹13 Cr	—
Free Cash Flow	-₹26 Cr	-₹29 Cr	-₹13 Cr	₹7 Cr	—

🔴 Revenue has shrunk at 7.3% a year over 3 years.

🔴 EBITDA has shrunk at 59.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.1% to 1.6% over 3 years (-17.5 pts).

🔴 PAT (Net Profit) has turned negative, from ₹15 Cr to -₹2 Cr.

🔴 ROE has fallen from 12.9% to -1.0% over 3 years (-13.9 pts).

🔴 ROCE has fallen from 17.8% to -2.4% over 3 years (-20.1 pts).

🟢 Free Cash Flow has turned positive, from -₹26 Cr to ₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹192 Cr

Total Liabilities

₹33 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹23 Cr

Capex

-₹16 Cr

Recent News

1 mixed5 general

Frog Cellsat Share Price rises 8.32%: analysis

Univest, 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.

Should You Be Adding Frog Cellsat (NSE:FROG) To Your Watchlist Today?

Simply Wall Street, 26 Mar

FROG Stock Price and Chart — NSE:FROG

TradingView, 31 Oct

Frog Cellsat Shares Skyrocketed 9% on Securing LoA from ACES India

Equitypandit, 27 May

Frog Cellsat (NSEI:FROG) - Stock Analysis

Simply Wall Street, 15 Oct

Frog Cellsat IPO Allotment Status Check Online on Skylinerta {Allotment Out}

IPO Watch, 10 Oct

Watch Items

Revenue growth is negative (-50.4%) 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.
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

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑