Logica Infoway Limited

Consumer Cyclical — Specialty Retail · BSE

₹188.50+₹4.50 (+2.45%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Debt 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 Logica Infoway Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Logica Infoway Limited distributes and retails smartphones, IT hardware, software, and allied accessories and services in India.

IndustrySpecialty Retail

SectorConsumer Cyclical

Employees232

Annual revenue₹1,262 Cr

How does it make money?

Turns over ₹1,262 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 232 employees supports ₹5.44 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.44 Cr

Who are its competitors?

The closest listed comparisons in its industry are TRENT LTD, TITAN COMPANY LIMITED, AVENUE SUPERMARTS LIMITED. 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 32.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 14.9% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +84% while net margin moved +119% 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+84%

Margin effect+119%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.83x is high — earnings must service borrowings before shareholders see anything
• Current ratio of 1.32 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 2.4x — little room if profits dip
✗ Debt has grown 43.0% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

73/ 100

Cheap

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

23.7x

3Y Median

48.4x

40 monthly readings · mean 100.9x · range 24.5x–629.3x

Sector Median

69.9x

median of 3 sector peers

🟢Current valuation is approximately 51% below its 3y median of 48.4x. 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 trades 66% below the peer median of 69.9x.

vs. its own history

Cheap

48.4x median over 40 months · -51%

vs. sector peers

Cheap

69.9x median of 3 peers · -66%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.3x

PEG

0.40

What's Good / What's Bad

🟢 What's Going Well5

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 6.6% to 13.9%.
Return on capital is rising
ROCE has improved from 19.1% to 32.3%.
High return on capital employed
ROCE of 32.3% is the mark of a business that converts capital into profit efficiently.
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 · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 192% over 3 years, from ₹64 Cr to ₹187 Cr.
🔴High leverageFinancial
Debt/Equity of 1.83x — earnings must service borrowings before shareholders see anything.
🟡Receivables growing faster than salesFinancial
Receivables up 115% against revenue up 84% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 143% against revenue up 84% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 32.3% 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 51% 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.
Cheaper than its peers
It trades 66% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

The debt load needs earnings to hold up
Debt is 5.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 115% against revenue up 84%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
2 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 17% a year✓ 22.5% CAGR
Latest reported year was 20.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 2.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹30 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 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 · 6 neutral · 2 weak

Market Cap

₹335 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.7x

Fair

Fairly valued against the generic band

P/B Ratio

3.29x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.97

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

32.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.83x

High

High leverage

Revenue Growth (YoY)

20.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.1%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹56 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

6.0%

Average

Average asset productivity

Operating Margin

2.1%

Weak

Thin margins leave little room for error

Net Margin

1.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.25

Defensive

Steadier than the market

52W Range Position

47%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

169.5 / 164.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

69.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹686 Cr	₹1,037 Cr	₹1,094 Cr	₹1,262 Cr	+22.5%
EBITDA	₹11 Cr	₹20 Cr	₹26 Cr	₹34 Cr	+44.9%
EBITDA Margin	1.6%	1.9%	2.4%	2.7%	—
PAT (Net Profit)	₹4 Cr	₹8 Cr	₹11 Cr	₹14 Cr	+59.2%
EPS	₹2.05	₹4.73	₹6.12	—	—
ROE	6.6%	13.2%	12.0%	13.9%	—
ROCE	19.1%	30.6%	28.9%	32.3%	—
Total Debt	₹64 Cr	₹108 Cr	₹118 Cr	₹187 Cr	+43.0%
Free Cash Flow	-₹7 Cr	₹23 Cr	₹7 Cr	₹30 Cr	—

🟢 Revenue has grown at 22.5% a year over 3 years.

🟢 EBITDA has grown at 44.9% a year over 3 years.

🟢 EBITDA Margin has risen from 1.6% to 2.7% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 59.2% a year over 3 years.

🟢 ROE has risen from 6.6% to 13.9% over 3 years (+7.3 pts).

🟢 ROCE has risen from 19.1% to 32.3% over 3 years (+13.2 pts).

🔴 Total Debt has grown at 43.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹30 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹358 Cr

Total Liabilities

₹256 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹32 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.2%

Peer Comparison

Company	P/E	ROE
TRENT LTD	87.2x	25.9%
TITAN COMPANY LIMITED	68.5x	36.7%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 mixed3 general

Logica Infoway Share Price and valuation after today’s rise

Univest, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

LOGICA INFOWAY LIMITED Share Price

Upstox, 09 Oct

Logica Infoway Share Price: Price Rise and Sector Context

Univest, 25 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Logica Infoway Files Investor Presentation for H2 FY26 & FY26 Results

scanx.trade, 06 MayResults

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

PIND HOSPITALITY LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 07 Oct

Logica Infoway revises AGM record date to Sep 23 due to operational issues

scanx.trade, 01 Sept

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Profitability

WeakFinancial Health · 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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑