InfoBeans Technologies Limited

Technology — Software - Application · NSE

₹168.00+₹4.97 (+3.05%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

InfoBeans Technologies Limited designs, builds, and manages digital applications in the United States, Germany, India, the United Arab Emirates, and internationally.

IndustrySoftware - Application

SectorTechnology

Employees1,779

Annual revenue₹514 Cr

How does it make money?

Turns over ₹514 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 1,779 employees supports ₹28.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹28.9 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?Some evidence

ROCE of 25.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +33% while net margin moved +81% 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+33%

Margin effect+81%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.66 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

82/ 100

Excellent

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

Valuation

71/ 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

19.2x

3Y Median

34.1x

40 monthly readings · mean 36.0x · range 16.1x–64.5x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 44% below its 3y median of 34.1x. 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 16% above the peer median of 16.5x.

vs. its own history

Cheap

34.1x median over 40 months · -44%

vs. sector peers

Fair

16.5x median of 4 peers · +16%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.7x

PEG

0.56

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 22.0% to 26.3% over 3 years.
Debt is being paid down
Total debt is down 60% over 3 years.
Return on equity is rising
ROE has improved from 13.2% to 21.0%.
Return on capital is rising
ROCE has improved from 14.8% to 25.0%.
High return on capital employed
ROCE of 25.0% 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 Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 3.55x — earnings must service borrowings before shareholders see anything.
🟡Receivables growing faster than salesFinancial
Receivables up 68% against revenue up 33% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 25.0% 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 22.0% to 26.3%. 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 60% 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 44% 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?

Leverage amplifies any setback
Debt/Equity of 3.55x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 68% against revenue up 33%. 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.

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

1Revenue growth stays above 8% a year✓ 10.1% CAGR
Latest reported year was 36.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 26.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹71 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 25.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹1,629 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.94x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.74

Profitable

Profitable on a per-share basis

ROE

21.0%

Strong

Strong capital efficiency

ROCE

25.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.55x

High

High leverage

Revenue Growth (YoY)

36.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-6.7%

Falling

Profits are shrinking

Dividend Yield

0.30%

Modest

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

Free Cash Flow

₹71 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

16.7%

Good

Healthy core-business profitability

Net Margin

15.3%

Good

Strong bottom-line conversion

Current Ratio

10.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.66

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

151.6 / 155.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

80.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹385 Cr	₹369 Cr	₹395 Cr	₹514 Cr	+10.1%
EBITDA	₹85 Cr	₹41 Cr	₹53 Cr	₹135 Cr	+16.7%
EBITDA Margin	22.0%	11.1%	13.4%	26.3%	—
PAT (Net Profit)	₹36 Cr	₹22 Cr	₹38 Cr	₹87 Cr	+34.1%
EPS	₹3.69	₹2.3	₹3.88	₹8.91	+34.2%
ROE	13.2%	7.6%	11.4%	21.0%	—
ROCE	14.8%	10.5%	14.6%	25.0%	—
Total Debt	₹36 Cr	₹24 Cr	₹20 Cr	₹15 Cr	-26.2%
Free Cash Flow	₹72 Cr	₹42 Cr	₹45 Cr	₹71 Cr	-0.6%

🟢 Revenue has grown at 10.1% a year over 3 years.

🟢 EBITDA has grown at 16.7% a year over 3 years.

🟢 EBITDA Margin has risen from 22.0% to 26.3% over 3 years (+4.3 pts).

🟢 PAT (Net Profit) has grown at 34.1% a year over 3 years.

🟢 EPS has grown at 34.2% a year over 3 years.

🟢 ROE has risen from 13.2% to 21.0% over 3 years (+7.7 pts).

🟢 ROCE has risen from 14.8% to 25.0% over 3 years (+10.2 pts).

🟢 Total Debt has shrunk at 26.2% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-0.6% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹489 Cr

Total Liabilities

₹76 Cr

Cash & Equivalents

₹59 Cr

Operating Cash Flow

₹85 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

1.0%

Insider Holding

77.8%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

06 Aug 2026

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

2 mixed4 general

InfoBeans Technologies (INFOBEAN.NS) Gains 4.28% to ₹170.0, Tests Upper End of Recent Range - Momentum ETF

https://www.siam.in/, 16 Oct

Infobeans Technologies Share Price gains; valuation view

Univest, 28 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

InfoBeans Technologies to appoint new independent director on Oct 17

scanx.trade, 16 Oct

InfoBeans Technologies' (NSE:INFOBEAN) Earnings Are Weaker Than They Seem

Simply Wall Street, 23 JulResults

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

InfoBeans Technologies INFOBEAN Share Price Movement Clarification

Kalkine India, 09 Oct

Infobeans Tech up 5% as firm sees 'limited' impact from West Asia conflict

Business Standard, 12 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

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.

All 5 tripwires holding · see Key things to watch ↑