IntraSoft Technologies Limited

Consumer Cyclical — Internet Retail · NSE

₹103.90−₹0.87 (−0.83%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, 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 modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

IntraSoft Technologies Limited, through its subsidiaries, multichannel online retail platform, engages in the development and delivery of e-commerce and e-cards through internet platforms in India and internationally.

IndustryInternet Retail

SectorConsumer Cyclical

Employees57

Annual revenue₹534 Cr

How does it make money?

Turns over ₹534 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 57 employees supports ₹9.37 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹9.37 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. 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 5.4% 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.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +17% while net margin moved +35% 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+17%

Margin effect+35%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 5.0% is weak

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

84/ 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

12.4x

3Y Median

16.9x

40 monthly readings · mean 17.0x · range 7.1x–27.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 3y median of 16.9x. 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 82% below the peer median of 69.2x.

vs. its own history

Cheap

16.9x median over 40 months · -27%

vs. sector peers

Cheap

69.2x median of 4 peers · -82%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.8x

PEG

0.75

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 88% over 3 years.
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

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 6.49x — earnings must service borrowings before shareholders see anything.
🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹33 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 88% 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 27% 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 82% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 6.49x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 5.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 1%✓ 3.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹33 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✓ 5.3% CAGR
Latest reported year was 8.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 5.4%
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 · 3 neutral · 4 weak

Market Cap

₹169 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.4x

Cheap

Cheap against the generic band

P/B Ratio

0.64x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.41

Profitable

Profitable on a per-share basis

ROE

5.0%

Weak

Weak capital efficiency

ROCE

5.4%

Weak

Low return on total capital employed

Debt/Equity

6.49x

High

High leverage

Revenue Growth (YoY)

8.3%

Modest

Modest growth

Profit Growth (YoY)

11.2%

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

-₹33 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

8.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.12

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

82%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

100.0 / 90.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

58.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹457 Cr	₹485 Cr	₹507 Cr	₹534 Cr	+5.3%
EBITDA	₹19 Cr	₹25 Cr	₹19 Cr	₹17 Cr	-3.4%
EBITDA Margin	4.1%	5.2%	3.7%	3.2%	—
PAT (Net Profit)	₹8 Cr	₹10 Cr	₹13 Cr	₹13 Cr	+16.4%
EPS	₹5.71	₹6.61	₹7.78	₹8.14	+12.5%
ROE	4.7%	4.6%	5.6%	5.0%	—
ROCE	5.5%	6.9%	7.0%	5.4%	—
Total Debt	₹148 Cr	₹139 Cr	₹13 Cr	₹17 Cr	-51.1%
Free Cash Flow	-₹33 Cr	-₹7 Cr	₹41 Cr	-₹33 Cr	—

🟢 Revenue has grown at 5.3% a year over 3 years.

🔴 EBITDA has shrunk at 3.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.2% over 3 years.

🟢 PAT (Net Profit) has grown at 16.4% a year over 3 years.

🟢 EPS has grown at 12.5% a year over 3 years.

🟡 ROE has held roughly flat at 5.0% over 3 years.

🟡 ROCE has held roughly flat at 5.4% over 3 years.

🟢 Total Debt has shrunk at 51.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹323 Cr

Total Liabilities

₹57 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹19 Cr

Capex

-₹52 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.3%

Corporate Actions

Ex-Dividend Date

05 Sept 2022

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 mixed5 general

Intrasoft Technologies Share Price Surges

Kalkine India, 17 SeptPrice 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.

Intrasoft Technologies Ltd

Equitypandit, 15 Mar

Intrasoft Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Compare with INTRASOFT TECHNOLOGIES

Equitymaster, 08 Oct

Intrasoft Technologies: Best Stock in Its Sector? Key Metrics

Univest, 29 Sept

Intrasoft Technologies to approve subsidiary amalgamation at AGM

scanx.trade, 07 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health · Risk

WeakBusiness Quality · Profitability

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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑