Ksolves India Limited

Technology — Software - Application · NSE

₹253.90+₹5.78 (+2.33%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

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, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ksolves India Limited provides software development services in North America, India, Europe, Australia, and internationally.

IndustrySoftware - Application

SectorTechnology

Employees600

Annual revenue₹163 Cr

How does it make money?

Turns over ₹163 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹30 left at the operating level before interest, tax and depreciation. Each of its 600 employees supports ₹27.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹27.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 115.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 116.8% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

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 +108% while net margin moved -33% 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+108%

Margin effect-33%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Revenue CAGR of 27.6% — compounding well above nominal GDP
• Profit CAGR of 11.6%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of 10.0% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

66/ 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

16.2x

3Y Median

30.1x

40 monthly readings · mean 33.2x · range 17.1x–59.3x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 3y median of 30.1x. 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 is priced broadly in line with the peer median of 16.5x.

vs. its own history

Cheap

30.1x median over 40 months · -46%

vs. sector peers

Fair

16.5x median of 4 peers · -2%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.2x

PEG

1.40

What's Good / What's Bad

🟢 What's Going Well5

Cash generation is improving
Free cash flow is up 45% over 3 years.
Return on equity is rising
ROE has improved from 110.4% to 116.8%.
High return on capital employed
ROCE of 115.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 138.9% to 115.7% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.5 points, from 42.8% to 30.3%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 115.7% 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.
Priced below its own history
The stock trades 46% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹29 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 42.8% to 30.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 21% a year✓ 27.6% CAGR
Latest reported year was 10.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 28%✓ 30.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹29 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 113%✓ 115.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

8 good · 2 neutral · 1 weak

Market Cap

₹602 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.2x

Fair

Fairly valued against the generic band

P/B Ratio

20.47x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.65

Profitable

Profitable on a per-share basis

ROE

116.8%

Strong

Strong capital efficiency

ROCE

115.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

10.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

43.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

5.51%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹29 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

28.2%

Good

Healthy core-business profitability

Net Margin

22.3%

Good

Strong bottom-line conversion

Current Ratio

2.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

248.3 / 261.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

58.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹78 Cr	₹109 Cr	₹137 Cr	₹163 Cr	+27.6%
EBITDA	₹34 Cr	₹48 Cr	₹49 Cr	₹49 Cr	+13.7%
EBITDA Margin	42.8%	43.7%	35.7%	30.3%	—
PAT (Net Profit)	₹25 Cr	₹34 Cr	₹34 Cr	₹34 Cr	+11.6%
EPS	₹10.43	₹14.4	₹14.47	₹14.48	+11.6%
ROE	110.4%	143.3%	165.4%	116.8%	—
ROCE	138.9%	177.4%	160.1%	115.7%	—
Total Debt	—	—	₹14 Cr	₹6 Cr	—
Free Cash Flow	₹20 Cr	₹31 Cr	₹27 Cr	₹29 Cr	+13.2%

🟢 Revenue has grown at 27.6% a year over 3 years.

🟢 EBITDA has grown at 13.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 42.8% to 30.3% over 3 years (-12.5 pts).

🟢 PAT (Net Profit) has grown at 11.6% a year over 3 years.

🟢 EPS has grown at 11.6% a year over 3 years.

🟢 ROE has risen from 110.4% to 116.8% over 3 years (+6.4 pts).

🔴 ROCE has fallen from 138.9% to 115.7% over 3 years (-23.1 pts).

🟢 Free Cash Flow has grown at 13.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹62 Cr

Total Liabilities

₹33 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹31 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.2%

Corporate Actions

Dividend Rate

₹14

Ex-Dividend Date

21 Jul 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

3 positive1 mixed2 general

Ksolves India Limited (NSE:KSOLVES) Stock Goes Ex-Dividend In Just Two Days

Simply Wall Street, 18 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Ksolves India (KSOLVES) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Ksolves India Q2FY27 Results: Earnings call set for Oct 23 at 4 pm

scanx.trade, 13 OctResults

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

Ksolves India vs Nifty 50: Share Price Performance Compared

Univest, 01 Oct

Ksolves India consolidated net profit rises 43.23% in the June 2026 quarter

Business Standard, 15 JulResults

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

Ksolves India Declares ₹5 per Share Third Interim Dividend; Record Date Set Today

HDFC Sky, 27 JanCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation · Risk

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 5 tripwires holding · see Key things to watch ↑