Hiliks Technologies Limited

Industrials — Staffing & Employment Services · BSE

₹73.29+₹2.40 (+3.39%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:29 pm

Understanding the Business

Company site ↗

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

What does this company do?

Hiliks Technologies Limited engages in the provision of information technology services in India.

IndustryStaffing & Employment Services

SectorIndustrials

Employees24

Annual revenue₹30 Cr

How does it make money?

Turns over ₹30 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 24 employees supports ₹1.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.23 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 4.8% 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 +686% while net margin moved +25% 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+686%

Margin effect+25%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.1% is weak

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

66/ 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

46.1x

3Y Median

187.1x

40 monthly readings · mean 333.2x · range 74.1x–1283.9x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 75% below its 3y median of 187.1x. 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 48% below the peer median of 88.8x.

vs. its own history

Cheap

187.1x median over 40 months · -75%

vs. sector peers

Cheap

88.8x median of 3 peers · -48%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

48.5x

PEG

0.40

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 2.6% to 4.8%.
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

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Inventory building faster than salesFinancial
Inventory up 2166% against revenue up 686% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 112% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 75% 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.
Cheaper than its peers
It trades 48% 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?

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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 74% a year✓ 98.8% CAGR
Latest reported year was 535.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 4.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 187.1x✓ 46.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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 · 4 neutral · 4 weak

Market Cap

₹96 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.97x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.59

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

4.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

535.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

526.7%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.9%

Average

Average margins

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

3.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

69%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

66.5 / 66.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹1 Cr	₹7 Cr	₹30 Cr	+98.8%
EBITDA	₹0 Cr	₹0 Cr	₹2 Cr	₹2 Cr	+102.5%
EBITDA Margin	6.3%	12.8%	21.7%	6.6%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+114.0%
EPS	₹0.17	₹0.09	₹0.53	₹0.76	+64.7%
ROE	1.4%	0.7%	2.3%	3.1%	—
ROCE	2.6%	1.4%	3.6%	4.8%	—
Total Debt	₹0 Cr	₹0 Cr	—	—	—
Free Cash Flow	-₹0 Cr	-₹2 Cr	-₹12 Cr	-₹5 Cr	—

🟢 Revenue has grown at 98.8% a year over 3 years.

🟢 EBITDA has grown at 102.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.6% over 3 years.

🟢 PAT (Net Profit) has grown at 114.0% a year over 3 years.

🟢 EPS has grown at 64.7% a year over 3 years.

🟢 ROE has risen from 1.4% to 3.1% over 3 years (+1.6 pts).

🟢 ROCE has risen from 2.6% to 4.8% over 3 years (+2.2 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹35 Cr

Total Liabilities

₹9 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.9%

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

1 positive5 general

Hiliks Technologies promoter sells 3.52% stake to Enact Technologies for ₹3.6 crore

scanx.trade, 05 Oct

Multibagger Hiliks Technologies shares to be in focus on Friday after company secures ₹95 crore order

Livemint, 19 JunOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Hiliks Technologies Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 21 Sept

Hiliks Technologies Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Hiliks Technologies: कंपनीच्या मालकी हक्कात मोठा बदल; गुंतवणूकदारांसाठी **₹26.58 कोटींचा** ओपन ऑफर

Whalesbook, 05 Oct

Hiliks Technologies soars after bagging Rs 96-cr railway signalling subcontract

Business Standard, 19 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingValuation

WeakBusiness Quality · Profitability · 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.

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