Mobavenue AI Tech Limited

Consumer Defensive — Education & Training Services · BSE

₹272.85−₹0.75 (−0.27%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mobavenue AI Tech Limited operates AI-powered advertising, marketing, and consumer media platforms in India and internationally.

IndustryEducation & Training Services

SectorConsumer Defensive

Employees200

Annual revenue₹218 Cr

How does it make money?

Turns over ₹218 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 200 employees supports ₹1.09 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.09 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES 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 33.8% 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 ROE51.0%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.46 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

59.3x

1.3Y Median

178.6x

16 monthly readings · mean 159.8x · range 69.8x–239.1x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 67% below its 1.3y median of 178.6x. 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 37% above the peer median of 43.3x.

vs. its own history

Cheap

178.6x median over 16 months · -67%

vs. sector peers

Expensive

43.3x median of 4 peers · +37%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

43.6x

PEG

—

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 -0.6% to 32.4%.
Return on capital is rising
ROCE has improved from -0.5% to 33.8%.
High return on capital employed
ROCE of 33.8% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.14x 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

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 229% over 3 years, from ₹4 Cr to ₹13 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 33.8% 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 67% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹22 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 37% above the peer median. That premium needs a reason that persists, or it closes.
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

1EBITDA margin holds above 20%✓ 21.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹22 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 31%✓ 33.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 178.6x✓ 59.3x 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

5 good · 2 neutral · 4 weak

Market Cap

₹2,109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

59.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

23.29x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹4.6

Profitable

Profitable on a per-share basis

ROE

57.7%

Strong

Strong capital efficiency

ROCE

33.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

-27.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-15.7%

Falling

Profits are shrinking

Dividend Yield

0.07%

Modest

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

Free Cash Flow

₹12 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

17.1%

Good

Assets are working hard

Operating Margin

20.3%

Good

Healthy core-business profitability

Net Margin

13.4%

Good

Strong bottom-line conversion

Current Ratio

2.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

288.8 / 297.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

31.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹87 Cr	₹218 Cr	—
EBITDA	-₹0 Cr	-₹0 Cr	₹15 Cr	₹48 Cr	—
EBITDA Margin	—	—	17.5%	21.8%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹1 Cr	₹29 Cr	—
EPS	₹-0.01	₹-0.02	₹1.29	₹3.9	—
ROE	-0.6%	-0.9%	6.9%	32.4%	—
ROCE	-0.5%	-0.6%	24.4%	33.8%	—
Total Debt	₹4 Cr	₹5 Cr	₹12 Cr	₹13 Cr	+48.7%
Free Cash Flow	-₹0 Cr	-₹1 Cr	-₹4 Cr	₹22 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹48 Cr.

🟢 EBITDA Margin has risen from 17.5% to 21.8% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹29 Cr.

🟢 EPS has turned positive, from ₹-0.01 to ₹3.9.

🟢 ROE has risen from -0.6% to 32.4% over 3 years (+33.0 pts).

🟢 ROCE has risen from -0.5% to 33.8% over 3 years (+34.3 pts).

🔴 Total Debt has grown at 48.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹22 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹205 Cr

Total Liabilities

₹115 Cr

Cash & Equivalents

₹40 Cr

Operating Cash Flow

₹35 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

93.0%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

25 Aug 2026

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive3 mixed2 general

Mobavenue AI Tech Plans Board Meeting To Discuss Merger With Mobavenue Media

Sahi, 09 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Mobavenue AI Tech Stock: Could Its US Expansion Be the Turning Point for Its AdTech Business? By Trade Brains

Investing.com India, 10 JunCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

Multibagger small-cap stock Mobavenue AI hits 10% upper circuit in a weak market after Q1 PAT surges 95%

Livemint, 12 AugResults

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

Mobavenue AI Tech completes share split effective June 13

scanx.trade, 15 Jun

Mobavenue AI Tech Q1 profit nearly doubles as digital media and advertising revenue jumps 57%

Storyboard18, 12 AugResults

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

Mobavenue AI Tech Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Watch Items

Revenue growth is negative (-27.8%) 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

MiddlingGrowth

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑