Infollion Research Services Limited

Sector n/a · NSE

₹271.00+₹7.25 (+2.75%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:55 pm

Understanding the Business

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

How does it make money?

Turns over ₹77 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.7%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +252% while net margin moved +4% 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+252%

Margin effect+4%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

82/ 100

Excellent

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

Valuation

60/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

13.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 19.8% to 21.8% over 3 years.
Cash generation is improving
Free cash flow is up 719% over 3 years.
High return on capital employed
ROCE of 30.7% 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 32.7% to 23.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 40.7% to 30.7% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.7% 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 19.8% to 21.8%. 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?

Returns on shareholder capital are falling
ROE has dropped from 32.7% to 23.0%. 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.

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

1Revenue growth stays above 39% a year✓ 52.1% CAGR
Latest reported year was 49.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 28%✓ 30.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 8 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹263 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹12.83

Profitable

Profitable on a per-share basis

ROE

23.0%

Strong

Strong capital efficiency

ROCE

30.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

49.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

45.2%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

23.3%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

16.1%

Good

Strong bottom-line conversion

Current Ratio

9.12

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

160.3 / 158.6

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹22 Cr	₹34 Cr	₹52 Cr	₹77 Cr	+52.1%
EBITDA	₹4 Cr	₹6 Cr	₹11 Cr	₹17 Cr	+57.0%
EBITDA Margin	19.8%	17.0%	20.9%	21.8%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹9 Cr	₹12 Cr	+54.0%
EPS	₹3.52	₹4.39	₹8.84	₹12.83	+54.0%
ROE	32.7%	26.6%	20.7%	23.0%	—
ROCE	40.7%	35.7%	27.8%	30.7%	—
Free Cash Flow	₹1 Cr	₹3 Cr	₹8 Cr	₹4 Cr	+101.5%

🟢 Revenue has grown at 52.1% a year over 3 years.

🟢 EBITDA has grown at 57.0% a year over 3 years.

🟢 EBITDA Margin has risen from 19.8% to 21.8% over 3 years (+2.0 pts).

🟢 PAT (Net Profit) has grown at 54.0% a year over 3 years.

🟢 EPS has grown at 54.0% a year over 3 years.

🔴 ROE has fallen from 32.7% to 23.0% over 3 years (-9.6 pts).

🔴 ROCE has fallen from 40.7% to 30.7% over 3 years (-9.9 pts).

🟢 Free Cash Flow has grown at 101.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹61 Cr

Total Liabilities

₹7 Cr

Total Debt

—

Cash & Equivalents

₹35 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹2 Cr

Recent News

1 mixed5 general

Infollion Research Services (NSEI:INFOLLION) - Stock Analysis

Simply Wall Street, 15 Oct

Infollion Research Services Lower Circuit Today: Price, Data and Peers

Univest, 15 Oct

Solid Earnings May Not Tell The Whole Story For Infollion Research Services (NSE:INFOLLION)

Simply Wall Street, 29 AprResults

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

Infollion Research Services Ltd. Share Price Near 52W Low

Univest, 12 Aug

Infollion Research Services Ltd. Share Price Live Today

CNBC TV18, 26 Jul

Infollion Research Services IPO: Issue details, subscription status, other key things to know about SME issue

Livemint, 29 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

WeakRisk

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 4 tripwires holding · see Key things to watch ↑