IMEC Services Limited

Industrials — Consulting Services · BSE

₹70.00−₹1.57 (−2.19%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

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, 6:04 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

IMEC Services Limited provides management and consultancy services in India. It operates through Service and Trading segments. The company offers consultancy services for information technology, engineering, and technical.

IndustryConsulting Services

SectorIndustrials

Employees9

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹2699 reaches shareholders as profit, with ₹-914 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹2.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-913.6%

Net margin2699.0%

Revenue / employee₹2.6 lakh

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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of -6.4% 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.

ROCE-6.4%

ROE20.6%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -99% while net margin moved -28147% 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-99%

Margin effect-28147%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 82.6% a year
✗ Latest-year revenue growth of -100.0% is below the longer-term trend — momentum is fading
✗ Profit fell 68.6% in the latest year

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

88/ 100

Cheap

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

2.1x

2Y Median

2.9x

28 monthly readings · mean 163.6x · range 0.8x–990.0x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 28% below its 2y median of 2.9x. 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 98% below the peer median of 88.8x.

vs. its own history

Cheap

2.9x median over 28 months · -28%

vs. sector peers

Cheap

88.8x median of 3 peers · -98%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

2.1x

P/B

0.40x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Valuation below its historical average
At 2.1x the stock trades 28% below its own median of 2.9x.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from -1.4% to -913.6% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 1219% against revenue growth of -99% — customers are taking longer to pay.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 912.1 points, from -1.4% to -913.6%.
🔴Receivables growing faster than salesFinancial
Receivables up 1219% against revenue up -99% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 28% 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 98% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -1.4% to -913.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 1219% against revenue up -99%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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

1EBITDA margin holds above -916%✓ -913.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -6.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 2.9x✓ 2.1x 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

4 good · 3 neutral · 4 weak

Market Cap

₹13 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.1x

Cheap

Cheap against the generic band

P/B Ratio

0.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹33.02

Profitable

Profitable on a per-share basis

ROE

20.6%

Strong

Strong capital efficiency

ROCE

-6.4%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-100.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-68.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹70

ROA

-4.6%

Weak

Assets generate little profit

Operating Margin

-14447.4%

Weak

Thin margins leave little room for error

Net Margin

2699.0%

Good

Strong bottom-line conversion

Current Ratio

38.15

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

90.1 / 98.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹43 Cr	₹6 Cr	₹28 Cr	₹0 Cr	-82.6%
EBITDA	-₹1 Cr	₹0 Cr	₹26 Cr	-₹2 Cr	—
EBITDA Margin	-1.4%	0.7%	91.0%	-913.6%	—
PAT (Net Profit)	-₹4 Cr	₹0 Cr	₹25 Cr	₹6 Cr	—
EPS	₹-0.91	₹0.17	₹133.79	₹32.68	—
ROE	—	2.0%	93.9%	18.7%	—
ROCE	—	2.0%	93.9%	-6.4%	—
Free Cash Flow	₹2 Cr	₹0 Cr	₹9 Cr	-₹4 Cr	—

🔴 Revenue has shrunk at 82.6% a year over 3 years.

🔴 EBITDA Margin has fallen from -1.4% to -913.6% over 3 years (-912.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹4 Cr to ₹6 Cr.

🟢 EPS has turned positive, from ₹-0.91 to ₹32.68.

🟢 ROE has risen from 2.0% to 18.7% over 3 years (+16.7 pts).

🔴 ROCE has fallen from 2.0% to -6.4% over 3 years (-8.4 pts).

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

35.7%

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 mixed5 general

IMEC Services reports standalone net loss of Rs 0.48 crore in the June 2026 quarter

Business Standard, 15 AugResults

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

Multibagger Penny Stocks Of FY 2026: These 5 Shares Deliver Up To 245% Returns

News18, 23 Feb

IMEC Services schedules AGM for Sept 25 to appoint new CEO

scanx.trade, 02 Sept

RUCHISTRIP Historical Data

Equitypandit, 24 Sept

Imec's €2.5 Billion Investment in Europe's Semiconductor Future

Global Banking & Finance Review, 09 Feb

IMEC Services Limited (IMEC.BO) stock price, news, quote and history

Yahoo Finance Australia, 02 Mar

Watch Items

Revenue growth is negative (-100.0%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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.
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

🟡Business QualityAdequate9.6/20

🟡Financial HealthAdequate10.8/20

🔴GrowthWeak5/20

🟢ProfitabilityStrong14.1/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

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.

This thesis breaks if

✓EBITDA margin holds above -916%-913.6%
✗Free cash flow remains positive-₹4 Cr
✗ROCE stays above 8%-6.4%
✓Valuation vs its own median of 2.9x2.1x today