IB Infotech Enterprises Limited

Technology — Information Technology Services · BSE

₹28.40−₹0.45 (−1.56%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, 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, 6:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

IB Infotech Enterprises Limited provides information technology enabled services in India.

IndustryInformation Technology Services

SectorTechnology

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹37 left at the operating level before interest, tax and depreciation.

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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 45.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 42.9% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

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 +138% while net margin moved -2% 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+138%

Margin effect-2%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 29.9x already prices in growth
• P/E is close to its own historical median of 30.4x
✗ P/B of 9.02x is a steep premium to book

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

54/ 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

29.9x

3Y Median

30.4x

40 monthly readings · mean 39.7x · range 16.0x–113.1x

Sector Median

16.5x

median of 4 sector peers

🟡Currently trading close to its 3y median of 30.4x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 81% above the peer median of 16.5x.

vs. its own history

Fair

30.4x median over 40 months · -2%

vs. sector peers

Expensive

16.5x median of 4 peers · +81%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.4x

PEG

0.91

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 28.2% to 37.5% over 3 years.
High return on capital employed
ROCE of 45.3% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 64.4% to 42.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 69.9% to 45.3% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 9652% against revenue up 138% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 45.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 28.2% to 37.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 9652% against revenue up 138%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 81% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 64.4% to 42.9%. 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.
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 25% a year✓ 33.6% CAGR
Latest reported year was -34.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 35%✓ 37.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 42%✓ 45.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 3 neutral · 4 weak

Market Cap

₹36 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.9x

Fair

Fairly valued against the generic band

P/B Ratio

9.02x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.95

Profitable

Profitable on a per-share basis

ROE

42.9%

Strong

Strong capital efficiency

ROCE

45.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.53x

Low

Conservative leverage

Revenue Growth (YoY)

-34.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-56.3%

Falling

Profits are shrinking

Dividend Yield

0.35%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

22.1%

Good

Healthy core-business profitability

Net Margin

19.7%

Good

Strong bottom-line conversion

Current Ratio

4.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

29.4 / 34.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹6 Cr	₹6 Cr	₹7 Cr	+33.6%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹3 Cr	+46.9%
EBITDA Margin	28.2%	18.9%	27.5%	37.5%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+32.8%
EPS	₹0.58	₹0.57	₹0.58	₹1.35	+32.8%
ROE	64.4%	41.8%	30.6%	42.9%	—
ROCE	69.9%	56.7%	29.8%	45.3%	—
Total Debt	—	—	₹2 Cr	₹2 Cr	—
Free Cash Flow	-₹14 Cr	₹1 Cr	₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 33.6% a year over 3 years.

🟢 EBITDA has grown at 46.9% a year over 3 years.

🟢 EBITDA Margin has risen from 28.2% to 37.5% over 3 years (+9.3 pts).

🟢 PAT (Net Profit) has grown at 32.8% a year over 3 years.

🟢 EPS has grown at 32.8% a year over 3 years.

🔴 ROE has fallen from 64.4% to 42.9% over 3 years (-21.5 pts).

🔴 ROCE has fallen from 69.9% to 45.3% over 3 years (-24.6 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

1.6%

Insider Holding

67.7%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

22 Aug 2025

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

1 mixed1 negative4 general

IB Infotech Enterprises Ltd. Share Price Live Today

CNBC TV18, 03 Jan

IB Infotech Enterprises Q1 Results: Net profit drops 56% YoY to ₹37.67 lakh

scanx.trade, 28 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

IB Infotech Enterprises Ltd

Equitypandit, 08 Mar

IB Infotech Enterprises (BSE:519463) - Stock Analysis

Simply Wall Street, 14 Sept

IB INFOTECH ENTERPRISES LTD. Share Price - Live IBINFO Stock Price & Chart

Upstox, 05 Apr

Q4 results today: Airtel, Tata Motors, GAIL, Hero Motocorp & others to declare earnings on May 13 | Check full list

Livemint, 13 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-34.0%) 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

StrongBusiness Quality · Financial Health · Growth · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑