GACM Technologies Limited

Financial Services — Asset Management · NSE

₹0.60+₹0.02 (+3.45%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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

Company site ↗

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

What does this company do?

GACM Technologies Limited engaged in the software and financial consultancy related services in India.

IndustryAsset Management

SectorFinancial Services

Employees17

Annual revenue₹22 Cr

How does it make money?

Turns over ₹22 Cr a year. Of every ₹100 of sales, about ₹39 reaches shareholders as profit, with ₹64 left at the operating level before interest, tax and depreciation. Each of its 17 employees supports ₹1.29 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin64.2%

Net margin39.3%

Revenue / employee₹1.29 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE7.7%

ROE8.0%

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +111% while net margin moved -447% 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+111%

Margin effect-447%

DalalBaazaar Score

72/ 100

Good

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

75/ 100

Good

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

Valuation

74/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

10.0x

2Y Median

10.6x

28 monthly readings · mean 17.0x · range 6.1x–53.5x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 2y median of 10.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 41% below the peer median of 17.0x.

vs. its own history

Fair

10.6x median over 28 months · -5%

vs. sector peers

Cheap

17.0x median of 4 peers · -41%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.0x

P/B

0.67x

EV/EBITDA

8.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 6.2% to 64.2% over 3 years.
Return on capital is rising
ROCE has improved from -1.0% to 7.7%.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 1269% against revenue growth of 111% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 265% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.2% to 64.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 41% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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 21% a year✓ 28.2% CAGR
Latest reported year was -31.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 62%✓ 64.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 8.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 10.6x✓ 10.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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

3 good · 2 neutral · 6 weak

Market Cap

₹107 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.0x

Cheap

Cheap against the generic band

P/B Ratio

0.67x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.06

Profitable

Profitable on a per-share basis

ROE

8.0%

Weak

Weak capital efficiency

ROCE

7.7%

Weak

Low return on total capital employed

Debt/Equity

6.79x

High

High leverage

Revenue Growth (YoY)

-31.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-67.6%

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

-₹36 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹0.6

Operating Margin

32.1%

Good

Healthy core-business profitability

Net Margin

33.1%

Good

Strong bottom-line conversion

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

28%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

0.7 / 0.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

35.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10 Cr	₹7 Cr	₹14 Cr	₹22 Cr	+28.2%
EBITDA	₹1 Cr	₹3 Cr	₹7 Cr	₹14 Cr	+178.9%
EBITDA Margin	6.2%	34.9%	50.2%	64.2%	—
PAT (Net Profit)	-₹1 Cr	₹1 Cr	₹4 Cr	₹9 Cr	—
EPS	₹-0.04	₹0.03	₹0.07	₹0.07	—
ROE	—	15.9%	8.3%	8.0%	—
ROCE	-1.0%	11.0%	8.8%	7.7%	—
Total Debt	₹17 Cr	₹9 Cr	₹11 Cr	₹7 Cr	-24.8%
Free Cash Flow	₹0 Cr	-₹3 Cr	-₹23 Cr	-₹36 Cr	—

🟢 Revenue has grown at 28.2% a year over 3 years.

🟢 EBITDA has grown at 178.9% a year over 3 years.

🟢 EBITDA Margin has risen from 6.2% to 64.2% over 3 years (+58.0 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹9 Cr.

🟢 EPS has turned positive, from ₹-0.04 to ₹0.07.

🔴 ROE has fallen from 15.9% to 8.0% over 3 years (-7.9 pts).

🟢 ROCE has risen from -1.0% to 7.7% over 3 years (+8.7 pts).

🟢 Total Debt has shrunk at 24.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹36 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹132 Cr

Total Liabilities

₹24 Cr

Total Debt

₹7 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹39 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

17.8%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

6 general

GACM Technologies (NSEI:GATECHDVR) - Stock Analysis

Simply Wall Street, 15 Oct

GACM Tech: Why Are Institutions Paying +25% Premiums?

Investing.com India, 13 Aug

GACM Technologies Ltd. (DVR) Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

GACM Technologies (GATECHDVR) Share/Stock Price Live, NSE

TechGraph, 12 Oct

GACM Technologies Upper Circuit Today: Price, Data and Peers

Univest, 05 Oct

₹0.75 MultiBagger Penny Stock, +56% in 1 Month — Why Institutions Are Paying 25% Premium for GACM TECHNOLOGIES Shares?

ThePrint, 13 Aug

Watch Items

Revenue growth is negative (-31.4%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong13/20

🟡ProfitabilityModerate8.9/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 21% a year28.2% CAGR
✓EBITDA margin holds above 62%64.2%
✗Return on equity stays above 8%8.0%
✓Valuation vs its own median of 10.6x10.0x today