Logiciel Solutions Limited

Technology — Information Technology Services · BSE

₹30.00−₹1.00 (−3.23%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Logiciel Solutions Limited operates as an outsourced software development firm that designs, develops, and delivers custom software solutions to enterprises and startups worldwide.

IndustryInformation Technology Services

SectorTechnology

Employees146

Annual revenue₹21 Cr

How does it make money?

Turns over ₹21 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 146 employees supports ₹14.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹14.2 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 6.1% 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 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 +49% while net margin moved +17% 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+49%

Margin effect+17%

DalalBaazaar Score

55/ 100

Moderate

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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

72/ 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

8.1x

1.0Y Median

5.5x

12 monthly readings · mean 5.7x · range 4.3x–10.3x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 47% above its 1.0y median of 5.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 51% below the peer median of 16.5x.

vs. its own history

Expensive

5.5x median over 12 months · +47%

vs. sector peers

Cheap

16.5x median of 4 peers · -51%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

-1.0x

PEG

0.40

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 23.6% to 4.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.4% to 6.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 10299% against revenue up 49% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 51% 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?

Sales are being booked faster than collected
Receivables are up 10299% against revenue up 49%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 47% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 23.6% to 4.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1Revenue growth stays above 11% a year✓ 14.2% CAGR
Latest reported year was -0.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 6.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 5.5x✗ 8.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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
✓ 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

₹22 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.1x

Cheap

Cheap against the generic band

P/B Ratio

0.41x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.71

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-0.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-54.5%

Falling

Profits are shrinking

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

2.3%

Weak

Assets generate little profit

Operating Margin

-38.3%

Weak

Thin margins leave little room for error

Net Margin

11.3%

Good

Strong bottom-line conversion

Current Ratio

13.38

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

29.9 / 30.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14 Cr	₹17 Cr	₹21 Cr	₹21 Cr	+14.2%
EBITDA	₹3 Cr	₹6 Cr	₹8 Cr	₹4 Cr	+14.2%
EBITDA Margin	18.9%	36.5%	38.4%	19.0%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹5 Cr	₹2 Cr	+20.5%
EPS	₹1.8	₹5.32	₹6.92	—	—
ROE	23.6%	41.1%	21.8%	4.3%	—
ROCE	28.4%	51.8%	29.8%	6.1%	—
Total Debt	₹1 Cr	₹1 Cr	₹0 Cr	—	—
Free Cash Flow	₹1 Cr	-₹2 Cr	-₹2 Cr	-₹4 Cr	—

🟢 Revenue has grown at 14.2% a year over 3 years.

🟢 EBITDA has grown at 14.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 19.0% over 3 years.

🟢 PAT (Net Profit) has grown at 20.5% a year over 3 years.

🔴 ROE has fallen from 23.6% to 4.3% over 3 years (-19.3 pts).

🔴 ROCE has fallen from 28.4% to 6.1% over 3 years (-22.3 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹58 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹26 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.5%

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

SRIT INDIA LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 18 Oct

Logiciel Solutions signs ₹62.36 lakh marketing deal for brand refresh

scanx.trade, 23 Sept

Logiciel Solutions IPO Overview: Dates, Price & GMP

IndiaIPO, 26 Nov

Logiciel Solutions IPO Day 2: Issue booked 1.24x so far. Check GMP, issue details, subscription status. Apply or not?

Livemint, 01 Dec

Logiciel Solutions IPO Date: Check Issue Date, Price, Lot size, Subscription, News and Details - Moneycontrol

Moneycontrol.com, 25 Nov

Logiciel Solutions IPO GMP, Grey Market Premium Today

IPO Watch, 25 Nov

Watch Items

Revenue growth is negative (-0.8%) on the latest reported period — check if this is one-off or a trend.
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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

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.

3 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 5.5x · see Key things to watch ↑