LCC Infotech Limited

Consumer Defensive — Education & Training Services · NSE

₹4.29+₹0.20 (+4.89%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very 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 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

LCC Infotech Limited, through its subsidiary, eLCC Info.com Limited, operates as an information technology and software training company in India.

IndustryEducation & Training Services

SectorConsumer Defensive

Employees2

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-1607 reaches shareholders as profit, with ₹-1450 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹1.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹1.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES 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 -1.1% 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 ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -97% while net margin moved +2431% 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-97%

Margin effect+2431%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 70.2% a year

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

31/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

61.3x

Sector Median

43.3x

median of 4 sector peers

⚠️Against its sector it trades 42% above the peer median of 43.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

43.3x median of 4 peers · +42%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 18% over 3 years.

🔴 What Needs Attention0

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

Red Flags

7 items require attention · 6 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 5.57x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -10.1x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 1393.6 points, from -55.9% to -1449.5%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 33% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 18% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -55.9% to -1449.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.57x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 42% above the peer median. That premium needs a reason that persists, or it closes.
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 -1452%✓ -1449.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹43 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -10.1x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -1.1%
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

3 good · 3 neutral · 5 weak

Market Cap

₹72 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

61.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.69x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.07

Profitable

Profitable on a per-share basis

ROE

5.7%

Weak

Weak capital efficiency

ROCE

-1.1%

Weak

Low return on total capital employed

Debt/Equity

5.57x

High

High leverage

Revenue Growth (YoY)

542420.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

77.1%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

4.1%

Average

Average asset productivity

Operating Margin

41.5%

Good

Healthy core-business profitability

Net Margin

23.7%

Good

Strong bottom-line conversion

Current Ratio

2.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.23

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3.8 / 3.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY26	3Y CAGR
Revenue	₹1 Cr	₹2 Cr	₹2 Cr	₹0 Cr	-70.2%
EBITDA	-₹1 Cr	-₹1 Cr	-₹1 Cr	-₹0 Cr	—
EBITDA Margin	-55.9%	-35.9%	-31.6%	-1449.5%	—
PAT (Net Profit)	-₹1 Cr	-₹1 Cr	-₹53 Cr	-₹0 Cr	—
EPS	—	₹-0.05	₹-4.21	₹-0.03	—
ROE	-1.3%	-1.2%	-1884.9%	-1.2%	—
ROCE	—	-1.1%	-1747.2%	-1.1%	—
Total Debt	₹3 Cr	₹3 Cr	₹3 Cr	₹2 Cr	-6.3%
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹0 Cr	-₹43 Cr	—

🔴 Revenue has shrunk at 70.2% a year over 3 years.

🔴 EBITDA Margin has fallen from -55.9% to -1449.5% over 3 years (-1393.6 pts).

🟡 ROE has held roughly flat at -1.2% over 3 years.

🟡 ROCE has held roughly flat at -1.1% over 3 years.

🟢 Total Debt has shrunk at 6.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹43 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹48 Cr

Total Liabilities

₹5 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹43 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.3%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

2 mixed4 general

LCC Infotech AGM voting results: All resolutions pass with high majority

scanx.trade, 16 OctResults

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

LCC Infotech (LCCINFOTEC) Share/Stock Price Live, NSE

TechGraph, 09 Oct

LCC Infotech Ltd. Upper Circuit Streak: Day 2 Price and Data

Univest, 23 Sept

LCC Infotech (LCCINFOTEC.NS) Slips 2% to ₹3.39 as Penny Stock Retreats Toward ₹3.22 Support - Revenue Growth Stocks

siam.in, 08 Oct

Q2 Quarterly Results 2026 Today|Avenue Supermarts (DMart), Premier Polyfilm, , LCC Infotech, Grand Oak Canyon Distillery

Livemint, 10 OctResults

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

LCC Infotech appoints Ronak Thakor as additional executive director

scanx.trade, 17 Oct

Watch Items

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

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Profitability

WeakGrowth · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 6 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑