Mindteck (India) Limited

Technology — Information Technology Services · NSE

₹149.00+₹9.29 (+6.65%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mindteck (India) Limited provides engineering and information technology service in the United States, India, and internationally.

IndustryInformation Technology Services

SectorTechnology

Employees652

Annual revenue₹407 Cr

How does it make money?

Turns over ₹407 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 652 employees supports ₹62.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹62.5 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?Little sign of one

Returns on capital of 12.8% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +21% while net margin moved +25% 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+21%

Margin effect+25%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROCE of 12.8% is adequate but not distinctive
• ROCE has been broadly stable
✗ EBITDA margin of 11.6% is thin — little cushion if costs rise
✗ Net margin of 7.6% is slim
• Revenue has compounded at 6.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

58/ 100

Average

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

Valuation

67/ 100

Fair

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

16.3x

3Y Median

25.2x

40 monthly readings · mean 26.4x · range 15.1x–55.3x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 25.2x. 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

25.2x median over 40 months · -35%

vs. sector peers

Fair

16.5x median of 4 peers · -1%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.9x

PEG

1.09

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 9.4% to 11.6% over 3 years.
Debt is being paid down
Total debt is down 31% over 3 years.
Cash generation is improving
Free cash flow is up 125% over 3 years.
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

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 42% against revenue up 21% — 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 9.4% to 11.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 31% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 35% 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.
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 42% against revenue up 21%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 10%✓ 11.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.5% CAGR
Latest reported year was 2.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹26 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 10%✓ 12.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

2 good · 8 neutral · 1 weak

Market Cap

₹476 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.3x

Fair

Fairly valued against the generic band

P/B Ratio

1.57x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.13

Profitable

Profitable on a per-share basis

ROE

10.4%

Moderate

Moderate capital efficiency

ROCE

12.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.28x

Moderate

Moderate leverage

Revenue Growth (YoY)

2.7%

Modest

Modest growth

Profit Growth (YoY)

-4.4%

Falling

Profits are shrinking

Dividend Yield

0.67%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹26 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

6.7%

Average

Average margins

Net Margin

7.6%

Average

Average bottom-line conversion

Current Ratio

5.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.95

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

149.2 / 163.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹337 Cr	₹386 Cr	₹424 Cr	₹407 Cr	+6.5%
EBITDA	₹32 Cr	₹39 Cr	₹43 Cr	₹47 Cr	+14.4%
EBITDA Margin	9.4%	10.2%	10.1%	11.6%	—
PAT (Net Profit)	₹21 Cr	₹27 Cr	₹29 Cr	₹32 Cr	+14.9%
EPS	₹6.46	₹8.55	₹8.98	₹9.85	+15.1%
ROE	10.9%	12.4%	11.0%	10.4%	—
ROCE	13.7%	15.2%	13.5%	12.8%	—
Total Debt	₹6 Cr	₹2 Cr	₹7 Cr	₹4 Cr	-11.7%
Free Cash Flow	₹11 Cr	₹21 Cr	₹23 Cr	₹26 Cr	+31.0%

🟢 Revenue has grown at 6.5% a year over 3 years.

🟢 EBITDA has grown at 14.4% a year over 3 years.

🟢 EBITDA Margin has risen from 9.4% to 11.6% over 3 years (+2.2 pts).

🟢 PAT (Net Profit) has grown at 14.9% a year over 3 years.

🟢 EPS has grown at 15.1% a year over 3 years.

🟡 ROE has held roughly flat at 10.4% over 3 years.

🟡 ROCE has held roughly flat at 12.8% over 3 years.

🟢 Total Debt has shrunk at 11.7% a year over 3 years.

🟢 Free Cash Flow has grown at 31.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹370 Cr

Total Liabilities

₹66 Cr

Cash & Equivalents

₹61 Cr

Operating Cash Flow

₹26 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.7%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

06 Aug 2026

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

1 positive5 general

Mindteck (India) (MINDTECK) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Mindteck (India) Limited (NSE:MINDTECK) Passed Our Checks, And It's About To Pay A ₹1.00 Dividend

Simply Wall Street, 02 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Mindteck Share Price near 52-week low: price, valuation

Univest, 07 Oct

Mindteck (India) vs Nifty 50: Share Price Performance Compared

Univest, 07 Oct

Mindteck (India) Limited's Chairman and Managing Director Yusuf Lanewala Steps Down

scanx.trade, 15 Nov

Mindteck (India) Limited (MINDTECK.NS) Eases 0.87% to ₹158.61, Holding Above Key Support - Percent Above MA

https://www.siam.in/, 11 Sept

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 · Valuation

MiddlingBusiness Quality · Growth · 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.

All 5 tripwires holding · see Key things to watch ↑