Mahaveer Infoway Limited

Technology — Software - Application · BSE

₹11.24+₹0.53 (+4.95%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mahaveer Infoway Limited provides technology-oriented solutions in India.

IndustrySoftware - Application

SectorTechnology

Employees18

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 18 employees supports ₹14.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹14.5 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?Some evidence

ROCE of 19.4% 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%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -36% while net margin moved -420% 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-36%

Margin effect-420%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 14.0% a year
✗ Latest-year revenue growth of -90.2% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

70/ 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

15.0x

1.3Y Median

65.3x

16 monthly readings · mean 58.5x · range 9.2x–106.2x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 77% below its 1.3y median of 65.3x. 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

65.3x median over 16 months · -77%

vs. sector peers

Fair

16.5x median of 4 peers · -9%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

19.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from -7.2% to 13.7%.
Return on capital is rising
ROCE has improved from -2.1% to 19.4%.
Very low debt
Debt/Equity of 0.29x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

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.
🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.4% 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 77% 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?

The debt load needs earnings to hold up
Debt is 3.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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

1EBITDA margin holds above 13%✓ 15.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 16%✓ 19.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 65.3x✓ 15.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

6 good · 3 neutral · 2 weak

Market Cap

₹6 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Cheap

Cheap against the generic band

P/B Ratio

1.36x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.75

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

19.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

-90.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

701.0%

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

-273.9%

Weak

Thin margins leave little room for error

Net Margin

22.1%

Good

Strong bottom-line conversion

Current Ratio

2.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.88

Market-like

Moves roughly in line with the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

10.6 / 11.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

63.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹5 Cr	₹3 Cr	₹3 Cr	-14.0%
EBITDA	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-14.6%
EBITDA Margin	15.4%	5.9%	16.3%	15.0%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹0 Cr	₹1 Cr	—
EPS	₹-0.57	₹-0.71	₹0.15	₹1.16	—
ROE	-7.2%	-9.8%	2.0%	13.7%	—
ROCE	-2.1%	-6.5%	7.7%	19.4%	—
Total Debt	₹1 Cr	₹2 Cr	₹3 Cr	₹1 Cr	+0.5%
Free Cash Flow	₹1 Cr	-₹0 Cr	-₹0 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 14.0% a year over 3 years.

🔴 EBITDA has shrunk at 14.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 15.0% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.57 to ₹1.16.

🟢 ROE has risen from -7.2% to 13.7% over 3 years (+20.9 pts).

🟢 ROCE has risen from -2.1% to 19.4% over 3 years (+21.5 pts).

🟡 Total Debt has been broadly flat over 3 years (0.5% a year).

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.6%

Corporate Actions

Ex-Dividend Date

20 Sept 2012

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

2 positive2 mixed2 general

Mahaveer Infoway Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Mahaveer Infoway AGM resolutions pass with over 99.99% shareholder support

scanx.trade, 30 Sept

Mahaveer Infoway reports standalone net loss of Rs 0.13 crore in the June 2026 quarter

Business Standard, 14 JulResults

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

Mahaveer Infoway FY26 Net Profit Rises to INR 64.05 Lakh

scanx.trade, 20 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Mahaveer Infoway FY26 Results: Net profit surges 700% to ₹64 crore

scanx.trade, 08 SeptResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Q1 results 2026: HCL Tech to ICICI Prudential AMC among companies to declare Q1 results today; full list here

Livemint, 13 JulResults

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

Watch Items

Revenue growth is negative (-90.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

WeakGrowth · 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; Free cash flow remains positive · see Key things to watch ↑