Informed Technologies India Limited

Industrials — Specialty Business Services · BSE

₹81.50+₹1.50 (+1.88%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, 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, 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, 6:07 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 Informed Technologies India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Informed Technologies India Limited provides business process outsourcing services for the securities and financial research industry.

IndustrySpecialty Business Services

SectorIndustrials

Employees13

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹-3 left at the operating level before interest, tax and depreciation. Each of its 13 employees supports ₹9.3 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-3.3%

Net margin20.7%

Revenue / employee₹9.3 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 2.9% 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.

ROCE2.9%

ROE1.1%

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 -52% while net margin moved -215% 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-52%

Margin effect-215%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 21.6% a year

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

56/ 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

29.5x

2Y Median

24.1x

28 monthly readings · mean 35.6x · range 9.1x–135.8x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 23% above its 2y median of 24.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 67% below the peer median of 88.8x.

vs. its own history

Expensive

24.1x median over 28 months · +23%

vs. sector peers

Cheap

88.8x median of 3 peers · -67%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

29.5x

P/B

1.54x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -2.8% to 1.1%.
Return on capital is rising
ROCE has improved from -2.9% to 2.9%.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 0.6% to -3.3% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Valuation above its historical average
At 29.5x the stock trades 23% above its own median of 24.1x.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Margins are compressingFinancial
EBITDA margin is down 3.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 67% 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 0.6% to -3.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 23% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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

1EBITDA margin holds above -5%✓ -3.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 2.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 24.1x✗ 29.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

2 good · 5 neutral · 4 weak

Market Cap

₹34 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.5x

Fair

Fairly valued against the generic band

P/B Ratio

1.54x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.76

Profitable

Profitable on a per-share basis

ROE

1.1%

Weak

Weak capital efficiency

ROCE

2.9%

Weak

Low return on total capital employed

Debt/Equity

1.38x

Moderate

Moderate leverage

Revenue Growth (YoY)

-16.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

344.4%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹81.5

Operating Margin

-178.0%

Weak

Thin margins leave little room for error

Net Margin

100.4%

Good

Strong bottom-line conversion

Current Ratio

41.22

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.38

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

81.4 / 82.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-21.6%
EBITDA	₹0 Cr	₹1 Cr	₹1 Cr	-₹0 Cr	—
EBITDA Margin	0.6%	38.8%	36.5%	-3.3%	—
PAT (Net Profit)	-₹0 Cr	₹3 Cr	₹1 Cr	₹0 Cr	—
EPS	₹-1.08	₹6.64	₹3.2	₹0.6	—
ROE	-2.8%	14.3%	6.4%	1.1%	—
ROCE	-2.9%	13.0%	9.1%	2.9%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+7.5%
Free Cash Flow	-₹3 Cr	-₹1 Cr	-₹1 Cr	-₹2 Cr	—

🔴 Revenue has shrunk at 21.6% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 0.6% to -3.3% over 3 years (-3.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-1.08 to ₹0.6.

🟢 ROE has risen from -2.8% to 1.1% over 3 years (+4.0 pts).

🟢 ROCE has risen from -2.9% to 2.9% over 3 years (+5.8 pts).

🔴 Total Debt has grown at 7.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹24 Cr

Total Liabilities

₹2 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

8.5%

Insider Holding

88.1%

Corporate Actions

Ex-Dividend Date

19 Sept 2016

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 positive5 general

Informed Technologies India Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Informed Technologies India sets Sept 18 as AGM record date

scanx.trade, 01 Sept

Informed Technologies India Ltd. Share Price Live Today

CNBC TV18, 03 Jan

VEDAVAAG Stock Price and Chart — NSE:VEDAVAAG

TradingView, 18 Aug

Refex Industries consolidated net profit rises 87.96% in the March 2026 quarter

Business Standard, 26 MayResults

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

Informed Technologies cites oversight for delayed KMP resignation disclosure

scanx.trade, 07 Sept

Watch Items

Revenue growth is negative (-16.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟡Financial HealthAdequate11.9/20

🔴GrowthWeak2.4/20

🟢ProfitabilityStrong10/15

🔴ValuationDemanding6.1/15

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

This thesis breaks if

✓EBITDA margin holds above -5%-3.3%
✗Free cash flow remains positive-₹2 Cr
✗ROCE stays above 8%2.9%
✗Valuation vs its own median of 24.1x29.5x today