KS Smart Technologies Limited

Technology — Software - Infrastructure · BSE

₹90.56+₹4.31 (+5.00%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

KS Smart Technologies Limited provides digital transformation services and advanced technology solutions in India.

IndustrySoftware - Infrastructure

SectorTechnology

Employees2

Annual revenue₹1,312 Cr

How does it make money?

Turns over ₹1,312 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹655.96 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹655.96 Cr

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?Some evidence

ROCE of 36.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

73/ 100

Good

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 good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

15.0x

3Y Median

60.0x

40 monthly readings · mean 114.3x · range 9.9x–294.5x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 75% below its 3y median of 60.0x. 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

60.0x median over 40 months · -75%

vs. sector peers

Fair

16.5x median of 4 peers · -9%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.7x

PEG

0.01

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 7.7% to 25.3%.
High return on capital employed
ROCE of 36.1% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴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.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 11601% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.91 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 36.1% 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 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.

🔴 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 8%✓ 10.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 33%✓ 36.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 5.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

8 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹1,486 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Fair

Fairly valued against the generic band

P/B Ratio

3.56x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.02

Profitable

Profitable on a per-share basis

ROE

43.7%

Strong

Strong capital efficiency

ROCE

36.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

90.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

269.8%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

5.6%

Average

Average asset productivity

Operating Margin

5.0%

Weak

Thin margins leave little room for error

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

0.91

Adequate

Adequate, but no real cushion

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

92.7 / 102.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹688 Cr	₹1,312 Cr	—
EBITDA	-₹0 Cr	-₹1 Cr	₹42 Cr	₹133 Cr	—
EBITDA Margin	—	—	6.1%	10.1%	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	₹20 Cr	₹75 Cr	+1077.0%
EPS	₹0.33	₹-2.56	₹4.13	₹9.17	+202.9%
ROE	7.7%	-153.9%	44.5%	25.3%	—
ROCE	—	-202.6%	28.8%	36.1%	—
Total Debt	—	₹0 Cr	₹154 Cr	₹203 Cr	—
Free Cash Flow	-₹0 Cr	-₹1 Cr	-₹58 Cr	₹8 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹133 Cr.

🟢 EBITDA Margin has risen from 6.1% to 10.1% over 3 years (+4.0 pts).

🟢 PAT (Net Profit) has grown at 1077.0% a year over 3 years.

🟢 EPS has grown at 202.9% a year over 3 years.

🟢 ROE has risen from 7.7% to 25.3% over 3 years (+17.5 pts).

🟢 ROCE has risen from -202.6% to 36.1% over 3 years (+238.8 pts).

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,734 Cr

Total Liabilities

₹1,439 Cr

Cash & Equivalents

₹126 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.1%

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

1 positive5 general

KS Smart Technologies shareholders approve QIP and capital increase

scanx.trade, 12 Oct

KSSMART Stock Price and Chart — BSE:KSSMART

TradingView, 24 Feb

KS Smart Tech arm bags 111-cr order from UPDESCO

Business Standard, 17 JunOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

KS Smart Technologies approves ₹1,000 crore loan limit at 35th AGM

scanx.trade, 03 Oct

Momentum Stocks: Delaplex, Neochem Bio, Aeroflex Industries gain up to 16% on sheer momentum

Moneycontrol.com, 12 Oct

LG Electronics Inc. (066570.KS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 16 Oct

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.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

WeakRisk

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

All 5 tripwires holding · see Key things to watch ↑