Lee & Nee Softwares (Exports) Ltd.

Technology — Information Technology Services · NSE

₹7.10−₹0.10 (−1.39%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Lee & Nee Softwares (Exports) Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Lee & Nee Softwares (Exports) Ltd. designs, develops, manufactures, processes, and assembles computer software, hardware, and allied products in India and worldwide.

IndustryInformation Technology Services

SectorTechnology

Employees109

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 109 employees supports ₹10.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹10.7 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?Little sign of one

Returns on capital of 1.0% 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 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 +73% while net margin moved -13% 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+73%

Margin effect-13%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.5% is weak

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

29/ 100

Expensive

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

88.8x

Sector Median

16.5x

median of 4 sector peers

⚠️Against its sector it trades 436% above the peer median of 16.5x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

16.5x median of 4 peers · +436%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

58.4x

PEG

6.11

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -17.2% to 5.8% over 3 years.
Return on capital is rising
ROCE has improved from -2.1% to 1.0%.
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 Attention0

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

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 867% over 3 years, from ₹0 Cr to ₹0 Cr.
🔴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.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 395% against revenue up 73% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -17.2% to 5.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 395% against revenue up 73%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 436% above the peer median. That premium needs a reason that persists, or it closes.
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
4 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 15% a year✓ 19.9% CAGR
Latest reported year was 40.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 1.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹40 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

88.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.53x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.08

Profitable

Profitable on a per-share basis

ROE

0.5%

Weak

Weak capital efficiency

ROCE

1.0%

Weak

Low return on total capital employed

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

40.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

200.0%

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 burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-2.4%

Weak

Thin margins leave little room for error

Net Margin

3.0%

Average

Average bottom-line conversion

Current Ratio

6.20

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.03

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

36.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7 Cr	₹9 Cr	₹11 Cr	₹12 Cr	+19.9%
EBITDA	-₹1 Cr	₹0 Cr	₹1 Cr	₹1 Cr	—
EBITDA Margin	-17.2%	5.4%	5.6%	5.8%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+14.5%
EPS	₹0.04	₹0.09	₹0.06	₹0.06	+14.5%
ROE	0.4%	0.9%	0.5%	0.5%	—
ROCE	-2.1%	1.1%	0.9%	1.0%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+113.0%
Free Cash Flow	-₹2 Cr	-₹1 Cr	-₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 19.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹1 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -17.2% to 5.8% over 3 years (+23.0 pts).

🟢 PAT (Net Profit) has grown at 14.5% a year over 3 years.

🟢 EPS has grown at 14.5% a year over 3 years.

🟡 ROE has held roughly flat at 0.5% over 3 years.

🟢 ROCE has risen from -2.1% to 1.0% over 3 years (+3.1 pts).

🔴 Total Debt has grown at 113.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹59 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

58.2%

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

6 general

Lee & Nee Softwares (Exports) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Lee & Nee Software (Exports) Ltd Locks at Lower Circuit With 5% Loss — Sellers Queue, No Buyers in Sight

MarketsMojo, 05 Oct

Lee & Nee submits 38th AGM summary; adopts FY26 accounts

scanx.trade, 01 Oct

Icodex Publishing Solutions (BSE:544483) - Stock Analysis

Simply Wall Street, 10 Oct

Lee & Nee Softwares (Exports) Ltd.

Stocktwits, 19 Aug

VEDAVAAG Stock Price and Chart — NSE:VEDAVAAG

TradingView, 18 Aug

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

MiddlingGrowth · Valuation

WeakBusiness Quality · Profitability · 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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑