Globesecure Technologies Limited

Sector n/a · NSE

₹43.95−₹0.55 (−1.24%)

DalalBaazaar Score

34 / 100

🔴 Weak

Verdict

CAUTION

Risk

Low

Driven by 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. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

The 60-second version of Globesecure Technologies 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 ₹21 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

EBITDA margin6.4%

Net margin-1.3%

What is its competitive advantage?Little sign of one

Returns on capital of 1.2% 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.

ROCE1.2%

ROE-0.6%

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 -121% 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-121%

DalalBaazaar Score

34/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 7.1% a year

Quality vs. Valuation

Company Quality

32/ 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

P/E (Trailing)

—

P/B

—

EV/EBITDA

57.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 13.2% to 6.4% over 3 years.
Return on equity is falling
ROE has dropped from 8.2% to -0.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.9% to 1.2% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 76% against revenue growth of -20% — customers are taking longer to pay.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.7 points, from 13.2% to 6.4%.
🔴Receivables growing faster than salesFinancial
Receivables up 76% against revenue up -20% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 64% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 13.2% to 6.4%. 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 5.5x 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 76% 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 8.2% to -0.6%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 4%✓ 6.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.5x
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✗ 0.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 1.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹70 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

-0.6%

Weak

Weak capital efficiency

ROCE

1.2%

Weak

Low return on total capital employed

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

22.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

90.3%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹43.95

Gross Margin

26.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

-1.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.24

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

11.5 / 12.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹26 Cr	₹24 Cr	₹17 Cr	₹21 Cr	-7.1%
EBITDA	₹3 Cr	₹3 Cr	-₹1 Cr	₹1 Cr	-26.9%
EBITDA Margin	13.2%	14.5%	-7.6%	6.4%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	-₹3 Cr	-₹0 Cr	—
EPS	₹1.82	₹1.04	₹-2.16	—	—
ROE	8.2%	4.8%	-6.3%	-0.6%	—
ROCE	12.9%	10.2%	-4.7%	1.2%	—
Total Debt	₹7 Cr	₹9 Cr	₹7 Cr	₹7 Cr	+0.7%
Free Cash Flow	-₹8 Cr	₹2 Cr	-₹24 Cr	₹2 Cr	—

🔴 Revenue has shrunk at 7.1% a year over 3 years.

🔴 EBITDA has shrunk at 26.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 13.2% to 6.4% over 3 years (-6.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹2 Cr to -₹0 Cr.

🔴 ROE has fallen from 8.2% to -0.6% over 3 years (-8.8 pts).

🔴 ROCE has fallen from 12.9% to 1.2% over 3 years (-11.7 pts).

🟡 Total Debt has been broadly flat over 3 years (0.7% a year).

🟢 Free Cash Flow has turned positive, from -₹8 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹71 Cr

Total Liabilities

₹26 Cr

Total Debt

₹7 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Recent News

6 general

Globesecure Technologies (NSEI:GSTL) - Stock Analysis

Simply Wall Street, 02 Jun

Globesecure Technologies IPO Date, GMP, Review, Price, Allotment & Analysis

IPO Watch, 11 Sept

Globesecure Technologies Limited (GSTL) Company Information

Simply Wall Street, 09 Aug

DUCON Stock Price and Chart — NSE:DUCON

TradingView, 11 Aug

IT stock under ₹10 jumps 5% after securing order from Kotak Securities for security products

Trade Brains, 07 Oct

IT stock hits 10% upper circuit after it received an order from BSNL; Check the details

Trade Brains, 05 Dec

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 HealthStrong14.2/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.5/15

🔴RiskHigh2.3/10

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

This thesis breaks if

✓EBITDA margin holds above 4%6.4%
✗Debt / EBITDA falls below 3x5.5x
✗Interest cover stays above 3x0.6x
✓Free cash flow remains positive₹2 Cr
✗ROCE stays above 8%1.2%