Itcons E-Solutions Limited

Industrials — Staffing & Employment Services · BSE

₹228.10−₹10.95 (−4.58%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Itcons E-Solutions Limited engages in the recruitment and staffing business in India. The company offers workforce management services, including IT staffing, general staffing, re-badging, recruitment process outsourcing, pass through services, and permanent hiring.

IndustryStaffing & Employment Services

SectorIndustrials

Employees5,000

Annual revenue₹88 Cr

How does it make money?

Turns over ₹88 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 5,000 employees supports ₹1.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹1.8 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.0% 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 ROE15.2%

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 +210% while net margin moved -2% 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+210%

Margin effect-2%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.88 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

52/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.7x

3Y Median

112.2x

40 monthly readings · mean 94.0x · range 8.2x–187.2x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 75% below its 3y median of 112.2x. 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 69% below the peer median of 88.8x.

vs. its own history

Cheap

112.2x median over 40 months · -75%

vs. sector peers

Cheap

88.8x median of 3 peers · -69%

vs. generic bands

Fair

15x–35x

EV/EBITDA

28.7x

PEG

0.62

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 14.2% to 8.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.8% to 11.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 5063% over 3 years, from ₹0 Cr to ₹3 Cr.
🔴High leverageFinancial
Debt/Equity of 5.68x — earnings must service borrowings before shareholders see anything.
🔴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.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 79% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 75% 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 69% 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 5.68x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 14.2% to 8.7%. 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.
Several serious flags at once
3 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

1Revenue growth stays above 34% a year✓ 45.8% CAGR
Latest reported year was 23.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹18 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

3 good · 6 neutral · 2 weak

Market Cap

₹205 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.7x

Fair

Fairly valued against the generic band

P/B Ratio

3.40x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.24

Profitable

Profitable on a per-share basis

ROE

10.8%

Moderate

Moderate capital efficiency

ROCE

11.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

5.68x

High

High leverage

Revenue Growth (YoY)

23.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

171.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.07%

Modest

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

Free Cash Flow

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

4.8%

Average

Average asset productivity

Operating Margin

4.9%

Weak

Thin margins leave little room for error

Net Margin

6.0%

Average

Average bottom-line conversion

Current Ratio

2.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.88

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

254.3 / 272.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹28 Cr	₹28 Cr	₹56 Cr	₹88 Cr	+45.8%
EBITDA	₹3 Cr	₹3 Cr	₹5 Cr	₹7 Cr	+40.4%
EBITDA Margin	9.2%	11.7%	9.4%	8.2%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹5 Cr	+44.9%
EPS	₹5.23	₹3.79	₹3.17	—	—
ROE	14.2%	13.7%	8.8%	8.7%	—
ROCE	19.8%	20.3%	12.6%	11.0%	—
Total Debt	₹0 Cr	₹2 Cr	₹4 Cr	₹3 Cr	+272.4%
Free Cash Flow	-₹1 Cr	-₹3 Cr	-₹24 Cr	-₹18 Cr	—

🟢 Revenue has grown at 45.8% a year over 3 years.

🟢 EBITDA has grown at 40.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 8.2% over 3 years.

🟢 PAT (Net Profit) has grown at 44.9% a year over 3 years.

🔴 ROE has fallen from 14.2% to 8.7% over 3 years (-5.5 pts).

🔴 ROCE has fallen from 19.8% to 11.0% over 3 years (-8.9 pts).

🔴 Total Debt has grown at 272.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹75 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹12 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.1%

Corporate Actions

Dividend Rate

₹0.15

Ex-Dividend Date

21 Sept 2026

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

ITCONS E-Solutions Share Price near yearly low, key levels

Univest, 09 Oct

ITCONS e-Solutions Secures ₹6.94 Crore UP Power Contract; Shares At ₹260

HDFC Sky, 29 Sept

ITCONS E-Solutions appoints Ajay Rana as independent director

scanx.trade, 18 Aug

ITCONS E-Solutions Share Price: Price Fall and Analysis

Univest, 05 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

ITCONS E-Solutions Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

ITCONS e-Solutions shareholders approve all four AGM resolutions unanimously

scanx.trade, 28 Sept

Watch Items

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.
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

StrongGrowth

MiddlingFinancial Health · Profitability · Valuation

WeakBusiness Quality · Risk

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑