Kretto Syscon Limited

Industrials — Infrastructure Operations · BSE

₹0.41₹0.00 (0.00%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kretto Syscon Limited engages in the software development and real estate projects in India. It offers technology solutions and application development services. The company was formerly known as Ideal Texbuild Limited and changed its name to Kretto Syscon Limited in April 2017.

IndustryInfrastructure Operations

SectorIndustrials

Employees5

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹39 reaches shareholders as profit, with ₹58 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹1.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ 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?Little sign of one

Returns on capital of 4.0% 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%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 2.9% is weak

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

68/ 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.

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

9.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 1786% over 3 years.
Return on capital is rising
ROCE has improved from 1.5% to 4.0%.
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

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 224% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

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 56%✓ 58.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 10 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 buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹28 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

0.52x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0

Loss-making

Negative earnings per share — the business is losing money

ROE

2.9%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

0.51x

Low

Conservative leverage

Revenue Growth (YoY)

-92.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-51.2%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-29.2%

Weak

Thin margins leave little room for error

Net Margin

1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

7.81

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.4 / 0.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹11 Cr	₹5 Cr	—
EBITDA	₹0 Cr	₹0 Cr	₹6 Cr	₹3 Cr	+126.9%
EBITDA Margin	—	—	54.9%	58.1%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹4 Cr	₹2 Cr	+120.7%
EPS	₹0.08	₹0.02	₹0.06	₹0.03	-29.0%
ROE	1.1%	1.5%	6.1%	2.9%	—
ROCE	1.5%	2.0%	8.1%	4.0%	—
Total Debt	—	₹1 Cr	₹1 Cr	₹0 Cr	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹3 Cr	₹3 Cr	+166.2%

🟢 EBITDA has grown at 126.9% a year over 3 years.

🟢 EBITDA Margin has risen from 54.9% to 58.1% over 3 years (+3.2 pts).

🟢 PAT (Net Profit) has grown at 120.7% a year over 3 years.

🔴 EPS has shrunk at 29.0% a year over 3 years.

🟢 ROE has risen from 1.1% to 2.9% over 3 years (+1.8 pts).

🟢 ROCE has risen from 1.5% to 4.0% over 3 years (+2.4 pts).

🟢 Free Cash Flow has grown at 166.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹71 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

44.9%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%

Recent News

6 general

Kretto Syscon - 14 penny stocks crash up to 80% in three months. Check full list here

The Economic Times, 25 Jan

Kretto Syscon shareholders approve FY26 financials with 100% assent

scanx.trade, 29 Sept

460% rally in five years! Penny stock under ₹2 jumps 3% despite weak trends in Dalal Street

Livemint, 28 Oct

Kretto Syscon - These 9 penny stocks plunge up to 67% in 3 months

The Economic Times, 20 Sept

Kretto Syscon (BSE:531328) - Stock Analysis

Simply Wall Street, 27 Mar

Kretto Syscon approves FY26 annual report, calls 31st AGM

scanx.trade, 03 Sept

Watch Items

Revenue growth is negative (-92.9%) on the latest reported period — check if this is one-off or a trend.
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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality

WeakProfitability · Risk

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 of 4 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑