IKIO Technologies Limited

Technology — Electronic Components · NSE

₹186.00+₹4.29 (+2.36%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

IKIO Technologies Limited, together with its subsidiaries, manufactures and sells light emitting diode lighting solutions in India and internationally.

IndustryElectronic Components

SectorTechnology

Employees435

Annual revenue₹595 Cr

How does it make money?

Turns over ₹595 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 435 employees supports ₹1.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.37 Cr

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?Little sign of one

Returns on capital of 8.9% 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 ROE32.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +66% while net margin moved -54% 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+66%

Margin effect-54%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Beta of 0.87 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

53/ 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

30.1x

3Y Median

40.4x

40 monthly readings · mean 39.9x · range 24.8x–58.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 25% below its 3y median of 40.4x. 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 82% above the peer median of 16.5x.

vs. its own history

Cheap

40.4x median over 40 months · -25%

vs. sector peers

Expensive

16.5x median of 4 peers · +82%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 43% over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 35.2% to 6.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 45.7% to 8.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴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.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.7 points, from 21.6% to 14.9%.
🟡Profit is decliningFinancial
Net profit is down 24% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 43% 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 25% 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.
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 21.6% to 14.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 82% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 35.2% to 6.3%. 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
3 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 14% a year✓ 18.4% CAGR
Latest reported year was 40.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹65 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 8%✓ 8.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 5 neutral · 2 weak

Market Cap

₹1,437 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.39x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.17

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

8.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

40.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

363.3%

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

-₹65 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.6%

Average

Average margins

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

3.15

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.87

Market-like

Moves roughly in line with the market

52W Range Position

61%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

194.6 / 201.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

29.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹359 Cr	₹438 Cr	₹486 Cr	₹595 Cr	+18.4%
EBITDA	₹77 Cr	₹101 Cr	₹70 Cr	₹89 Cr	+4.6%
EBITDA Margin	21.6%	23.1%	14.5%	14.9%	—
PAT (Net Profit)	₹50 Cr	₹61 Cr	₹31 Cr	₹38 Cr	-8.9%
EPS	₹6.47	₹8.09	₹4.19	₹4.87	-9.1%
ROE	35.2%	11.0%	5.5%	6.3%	—
ROCE	45.7%	15.4%	7.7%	8.9%	—
Total Debt	₹123 Cr	₹70 Cr	₹53 Cr	₹70 Cr	-17.2%
Free Cash Flow	₹37 Cr	-₹89 Cr	-₹61 Cr	-₹65 Cr	—

🟢 Revenue has grown at 18.4% a year over 3 years.

🟢 EBITDA has grown at 4.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.6% to 14.9% over 3 years (-6.7 pts).

🔴 PAT (Net Profit) has shrunk at 8.9% a year over 3 years.

🔴 EPS has shrunk at 9.1% a year over 3 years.

🔴 ROE has fallen from 35.2% to 6.3% over 3 years (-28.9 pts).

🔴 ROCE has fallen from 45.7% to 8.9% over 3 years (-36.8 pts).

🟢 Total Debt has shrunk at 17.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹37 Cr to -₹65 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹767 Cr

Total Liabilities

₹158 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

₹16 Cr

Capex

-₹82 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.8%

Corporate Actions

Ex-Dividend Date

13 Aug 2024

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

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

Value Research, 30 Aug

IKIO Technologies vs Nifty 50: Share Price Performance Compared

Univest, 28 Sept

IKIO Technologies profit surges 365% in Q1FY27 on diversified growth

scanx.trade, 08 AugResults

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

Insiders are the top stockholders in IKIO Technologies Limited (NSE:IKIO), and the recent 11% drop might have disappointed them

Simply Wall Street, 26 Jan

IKIO Technologies Ltd Actuals & Estimates (NSE:IKIO)

TradingView, 25 Jun

IKIO Technologies, GNG Electronics post their biggest single-day gains in August

CNBC TV18, 28 Aug

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

StrongFinancial Health

MiddlingGrowth · Valuation

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. 3 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 ↑