Gyftr Limited

Industrials — Specialty Business Services · NSE

₹171.90+₹5.13 (+3.08%)

DalalBaazaar Score

51 / 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: 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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gyftr Limited operates a digital gift card and instant voucher platform in India. The company offers products, such as digital gift vouchers across categories, including, dining, e-commerce, electronics, entertainment, fashion, gaming, gifting, home needs, travel, and wellness.

IndustrySpecialty Business Services

SectorIndustrials

Employees7

Annual revenue₹413 Cr

How does it make money?

Turns over ₹413 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹59.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹59.01 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. 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 6.0% 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 ROE15.2%

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 +2419% while net margin moved -94% 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+2419%

Margin effect-94%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Beta of 0.97 — moves roughly with the market
✗ 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

56/ 100

Average

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

Valuation

45/ 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

53.7x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 40% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -40%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

1360.1x

PEG

3.30

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 99% over 3 years.
Very low debt
Debt/Equity of 0.26x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 130.3 points, from 130.6% to 0.2%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹22 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 99% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 40% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 130.6% to 0.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 145% a year✓ 193.2% CAGR
Latest reported year was -7058.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹22 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 6.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 3 neutral · 5 weak

Market Cap

₹1,320 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

53.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.73x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.2

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

6.0%

Weak

Low return on total capital employed

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

-7058.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

1099.3%

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

-₹22 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

4.8%

Average

Average asset productivity

Operating Margin

0.4%

Weak

Thin margins leave little room for error

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

3.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.97

Market-like

Moves roughly in line with the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

166.5 / 168.4

Bearish alignment (short < long)

RSI (14)

56.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16 Cr	₹51 Cr	-₹6 Cr	₹413 Cr	+193.2%
EBITDA	₹21 Cr	₹80 Cr	₹7 Cr	₹1 Cr	-64.4%
EBITDA Margin	130.6%	158.4%	-121.2%	0.2%	—
PAT (Net Profit)	₹14 Cr	₹59 Cr	₹2 Cr	₹22 Cr	+16.3%
EPS	₹2.1	₹8.99	₹0.25	₹3.16	+14.6%
ROE	4.7%	16.7%	0.5%	4.5%	—
ROCE	6.2%	21.1%	1.3%	6.0%	—
Total Debt	₹121 Cr	₹85 Cr	₹36 Cr	₹1 Cr	-78.2%
Free Cash Flow	₹11 Cr	₹51 Cr	-₹1 Cr	-₹22 Cr	—

🟢 Revenue has grown at 193.2% a year over 3 years.

🔴 EBITDA has shrunk at 64.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 130.6% to 0.2% over 3 years (-130.3 pts).

🟢 PAT (Net Profit) has grown at 16.3% a year over 3 years.

🟢 EPS has grown at 14.6% a year over 3 years.

🟡 ROE has held roughly flat at 4.5% over 3 years.

🟡 ROCE has held roughly flat at 6.0% over 3 years.

🟢 Total Debt has shrunk at 78.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹11 Cr to -₹22 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹515 Cr

Total Liabilities

₹30 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

6.1%

Insider Holding

75.6%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

6 general

LKP Finance Share Price News: Price Action and Valuation

Univest, 06 Oct

Gyftr (BSE:507912) - Stock Analysis

Simply Wall Street, 17 Sept

Gyftr Limited shares listed on NSE effective July 10, 2026

scanx.trade, 10 Jul

No IPO, Yet An NSE Listing: How This Digital Rewards Platform Has Made It To The Stock Market

NDTV Profit, 10 Jul

1200% rally in five years! Multibagger stock jumps 7% despite weak trends on Dalal Street

Livemint, 13 Apr

Gyftr (NSEI:GYFTR) - Stock Analysis

Simply Wall Street, 17 Sept

Watch Items

Revenue growth is negative (-7058.1%) 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.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth

WeakBusiness Quality · Profitability · 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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑