Identixweb Limited

Technology — Software - Application · BSE

₹65.00₹0.00 (0.00%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Identixweb Limited operates as an information technology company that provides and delivers software as a service-based digital product solution worldwide.

IndustrySoftware - Application

SectorTechnology

Employees94

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹41 reaches shareholders as profit, with ₹62 left at the operating level before interest, tax and depreciation. Each of its 94 employees supports ₹13.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹13.9 lakh

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 20.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.3% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +110% while net margin moved +90% 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+110%

Margin effect+90%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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

79/ 100

Good

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

Valuation

86/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.7x

2Y Median

19.6x

20 monthly readings · mean 20.8x · range 18.2x–32.4x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 36% below its 2y median of 19.6x. 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 23% below the peer median of 16.5x.

vs. its own history

Cheap

19.6x median over 20 months · -36%

vs. sector peers

Cheap

16.5x median of 4 peers · -23%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.3x

PEG

0.22

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 35.3% to 61.8% over 3 years.
Debt is being paid down
Total debt is down 78% over 3 years.
High return on capital employed
ROCE of 20.8% 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 28.9% to 15.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 37.0% to 20.8% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.8% 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 35.3% to 61.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 78% 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 36% 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 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 28.9% to 15.7%. 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.
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 21% a year✓ 28.0% CAGR
Latest reported year was 65.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 60%✓ 61.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 20.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹68 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.7x

Cheap

Cheap against the generic band

P/B Ratio

1.98x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.13

Profitable

Profitable on a per-share basis

ROE

18.3%

Strong

Strong capital efficiency

ROCE

20.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

65.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

10.5%

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 burning

Spending more cash than the operations bring in

More Metrics

ROA

13.4%

Good

Assets are working hard

Operating Margin

45.6%

Good

Healthy core-business profitability

Net Margin

41.0%

Good

Strong bottom-line conversion

Current Ratio

3.77

Comfortable

Healthy short-term liquidity

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

67.0 / 66.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹6 Cr	₹9 Cr	₹13 Cr	+28.0%
EBITDA	₹2 Cr	₹4 Cr	₹6 Cr	₹8 Cr	+54.3%
EBITDA Margin	35.3%	57.1%	66.6%	61.8%	—
PAT (Net Profit)	₹1 Cr	₹3 Cr	₹4 Cr	₹5 Cr	+58.4%
EPS	₹1.29	₹2.53	₹3.56	—	—
ROE	28.9%	25.6%	19.1%	15.7%	—
ROCE	37.0%	35.2%	25.9%	20.8%	—
Total Debt	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-39.4%
Free Cash Flow	₹0 Cr	-₹4 Cr	-₹2 Cr	-₹7 Cr	—

🟢 Revenue has grown at 28.0% a year over 3 years.

🟢 EBITDA has grown at 54.3% a year over 3 years.

🟢 EBITDA Margin has risen from 35.3% to 61.8% over 3 years (+26.5 pts).

🟢 PAT (Net Profit) has grown at 58.4% a year over 3 years.

🔴 ROE has fallen from 28.9% to 15.7% over 3 years (-13.2 pts).

🔴 ROCE has fallen from 37.0% to 20.8% over 3 years (-16.3 pts).

🟢 Total Debt has shrunk at 39.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹37 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.7%

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 positive5 general

Compare with

Equitymaster, 14 Oct

Identixweb Limited Share Price

Upstox, 05 May

Identixweb to host investor meet on September 25, 2026

scanx.trade, 25 Sept

Identixweb schedules 9th AGM on September 29, 2026

scanx.trade, 29 Sept

Identixweb FY26 Results: Net profit up 46% YoY to ₹6.01 crore

scanx.trade, 07 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Identixweb IPO Date, Review, Price, Allotment Details

IPO Watch, 01 Apr

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

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