GlobalSpace Technologies Limited

Technology — Software - Application · BSE

₹32.60−₹0.36 (−1.09%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

GlobalSpace Technologies Limited provides technology-enabled business enhancement solutions for pharmaceutical and healthcare enterprises in India.

IndustrySoftware - Application

SectorTechnology

Employees34

Annual revenue₹51 Cr

How does it make money?

Turns over ₹51 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 34 employees supports ₹1.51 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.51 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 4.5% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +167% while net margin moved +116% 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+167%

Margin effect+116%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROCE of 4.5% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 8.6% is thin — little cushion if costs rise
✗ Net margin of 5.9% is slim
• Revenue has compounded at 38.8% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

56/ 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

34.7x

3Y Median

83.0x

40 monthly readings · mean 79.6x · range 11.8x–121.4x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 58% below its 3y median of 83.0x. 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 110% above the peer median of 16.5x.

vs. its own history

Cheap

83.0x median over 40 months · -58%

vs. sector peers

Expensive

16.5x median of 4 peers · +110%

vs. generic bands

Fair

15x–35x

EV/EBITDA

26.1x

PEG

0.44

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 86% over 3 years.
Cash generation is improving
Free cash flow is up 90% over 3 years.
Return on equity is rising
ROE has improved from 1.6% to 5.2%.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 5.70x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 23.1 points, from 31.7% to 8.6%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 43% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 86% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 58% 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 31.7% to 8.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.70x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 110% 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 29% a year✓ 38.8% CAGR
Latest reported year was 66.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✓ 3.1x
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.
5Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

₹112 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.7x

Fair

Fairly valued against the generic band

P/B Ratio

2.06x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.94

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

4.5%

Weak

Low return on total capital employed

Debt/Equity

5.70x

High

High leverage

Revenue Growth (YoY)

66.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

300.0%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

17.3%

Good

Healthy core-business profitability

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

1.92

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

71%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

32.5 / 33.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹19 Cr	₹29 Cr	₹43 Cr	₹51 Cr	+38.8%
EBITDA	₹6 Cr	₹5 Cr	₹4 Cr	₹4 Cr	-10.3%
EBITDA Margin	31.7%	16.8%	8.6%	8.6%	—
PAT (Net Profit)	₹1 Cr	-₹4 Cr	-₹2 Cr	₹3 Cr	+79.2%
EPS	₹0.22	₹-1.84	₹-1.75	₹2.61	+128.6%
ROE	1.6%	-6.3%	-3.7%	5.2%	—
ROCE	5.9%	-3.6%	-2.5%	4.5%	—
Total Debt	₹24 Cr	₹13 Cr	₹10 Cr	₹3 Cr	-48.2%
Free Cash Flow	₹4 Cr	-₹14 Cr	₹4 Cr	₹7 Cr	+23.9%

🟢 Revenue has grown at 38.8% a year over 3 years.

🔴 EBITDA has shrunk at 10.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 31.7% to 8.6% over 3 years (-23.1 pts).

🟢 PAT (Net Profit) has grown at 79.2% a year over 3 years.

🟢 EPS has grown at 128.6% a year over 3 years.

🟢 ROE has risen from 1.6% to 5.2% over 3 years (+3.7 pts).

🔴 ROCE has fallen from 5.9% to 4.5% over 3 years (-1.4 pts).

🟢 Total Debt has shrunk at 48.2% a year over 3 years.

🟢 Free Cash Flow has grown at 23.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹67 Cr

Total Liabilities

₹10 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.8%

Corporate Actions

Ex-Dividend Date

11 Nov 2021

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

6 general

Globalspace Technologies Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

Space Technology Market Size, Share | Growth Report [2034]

Fortune Business Insights, 28 Sept

Globalspace Technologies Share Price News and Valuation

Univest, 08 Oct

Globalspace Technologies schedules AGM on September 29 to approve MD re-appointment

scanx.trade, 05 Sept

Globalspace Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Globalspace Technologies Ltd. Upper Circuit: Price and Key Data

Univest, 05 Oct

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingProfitability · Valuation

WeakBusiness Quality · 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. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑