Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.
In simple words: The company is currently losing money, with modest growth. Cash generation is currently the main factor to watch.
Decision support, not a buy or sell call.
As of 18 Oct 2026, 6:10 pm
Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.
The 60-second version of One MobiKwik Systems Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
One MobiKwik Systems Limited provides digital payments and financial services for consumers and merchants in India and internationally.
IndustrySoftware - Infrastructure
SectorTechnology
Employees789
Annual revenue₹1,119 Cr
How does it make money?
Turns over ₹1,119 Cr a year. Of every ₹100 of sales, about ₹-6 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 789 employees supports ₹1.42 Cr of revenue a year, the signature of a capital- or asset-led business.
EBITDA margin0.5%
Net margin-5.5%
Revenue / employee₹1.42 Cr
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.
TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%
INFOSYS LIMITEDP/E 15.8x · ROE 32.0%
HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%
WIPRO LTDP/E 14.5x · ROE 15.9%
What is its competitive advantage?Little sign of one
Returns on capital of -6.8% 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.
ROCE-6.8%
ROE-11.5%
Peer median ROE32.0%
What is the outlook?
1 analysts covering the stock expect revenue to grow about 29.1% and earnings to grow about 118.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.
Est. revenue growth+29.1%
Est. earnings growth+118.2%
Analysts1
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 +107% while net margin moved -64% 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+107%
Margin effect-64%
DalalBaazaar Score
42/ 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
45/ 100
Average
How good the business is, ignoring the share price entirely.
vs
Valuation
25/ 100
Expensive
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.
vs. its own history
Not enough price and earnings history
vs. sector peers
Not enough peers with a usable P/E
vs. generic bands
N/A
No P/E — the company is lossmaking
P/E (Trailing)
Not meaningful
P/B
3.32x
EV/EBITDA
360.8x
PEG
—
Dividend Yield
None
What's Good / What's Bad
🟢 What's Going Well3
Margins are improving
EBITDA margin is up from -10.0% to 0.5% over 3 years.
Return on equity is rising
ROE has improved from -58.7% to -11.5%.
Return on capital is rising
ROCE has improved from -34.2% to -6.8%.
🔴 What Needs Attention2
Debt is rising
Total debt is up 34% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Red Flags
5 items require attention · 4 high · 1 watch
🔴Thin interest coverageFinancial
Operating profit covers interest only -1.5x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹62 Cr in the latest reported year.
🟡Debt is increasingFinancial
Total debt is up 34% over 3 years.
Investment Thesis
🟢 Bull CaseWhat could make this work?
Margin expansion has further to run
EBITDA margin has risen from -10.0% to 0.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
🔴 Bear CaseWhat could go wrong?
The debt load needs earnings to hold up
Debt is 54.2x 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
4 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 21% a year✓ 27.5% CAGR
Latest reported year was 3.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -2%✓ 0.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 54.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹90 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ -1.5x
How much operating profit can fall before interest stops being comfortably covered.
Investment Checklist
8 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish
Price history
Quick Metrics
2 good · 4 neutral · 5 weak
Market Cap
₹1,800 Cr
Micro Cap
Smaller company — thin liquidity and deep drawdowns are normal here
P/E (Trailing)
Not meaningful
Loss-making
Earnings are negative, so a P/E multiple can't be read here
P/B Ratio
3.32x
Fair
Moderate premium to the company's book value
EPS (TTM)
₹-1.62
Loss-making
Negative earnings per share — the business is losing money
ROE
-11.5%
Weak
Weak capital efficiency
ROCE
-6.8%
Weak
Low return on total capital employed
Debt/Equity
0.51x
Low
Conservative leverage
Revenue Growth (YoY)
3.7%
Modest
Modest growth
Profit Growth (YoY)
48.9%
Healthy
Profits growing at a healthy clip
Dividend Yield
None
None
No dividend yield reported — usually means no payout, but verify if one was recently initiated
Free Cash Flow
-₹90 Cr
Cash burning
Spending more cash than the operations bring in
More Metrics
CMP
₹228.6
P/E (Forward)
19.1x
Operating Margin
12.3%
Average
Average margins
Net Margin
-1.1%
Weak
Very little revenue reaches the bottom line
Current Ratio
1.47
Comfortable
Healthy short-term liquidity
52W Range Position
63%
Mid-range
Mid-range
Technical Snapshot
SMA 20 / SMA 50
220.1 / 206.6
Bullish alignment (short > long)
Price vs SMA 200
Above
Long-term uptrend
RSI (14)
63.5
Neutral momentum
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹539 Cr
₹875 Cr
₹1,170 Cr
₹1,119 Cr
+27.5%
EBITDA
-₹54 Cr
₹36 Cr
-₹81 Cr
₹5 Cr
—
EBITDA Margin
-10.0%
4.1%
-6.9%
0.5%
—
PAT (Net Profit)
-₹84 Cr
₹14 Cr
-₹122 Cr
-₹62 Cr
—
EPS
₹-14.66
₹2.38
₹-19.27
₹-7.93
—
ROE
-58.7%
8.7%
-20.6%
-11.5%
—
ROCE
-34.2%
14.5%
-15.4%
-6.8%
—
Total Debt
₹206 Cr
₹223 Cr
₹292 Cr
₹276 Cr
+10.3%
Free Cash Flow
₹26 Cr
-₹28 Cr
-₹77 Cr
-₹90 Cr
—
🟢 Revenue has grown at 27.5% a year over 3 years.
🟢 EBITDA has turned positive, from -₹54 Cr to ₹5 Cr.
🟢 EBITDA Margin has risen from -10.0% to 0.5% over 3 years (+10.5 pts).
🟢 ROE has risen from -58.7% to -11.5% over 3 years (+47.2 pts).
🟢 ROCE has risen from -34.2% to -6.8% over 3 years (+27.4 pts).
🔴 Total Debt has grown at 10.3% a year over 3 years.
🔴 Free Cash Flow has turned negative, from ₹26 Cr to -₹90 Cr.
🟡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.
Watch Items
Cross-check against the company's latest quarterly filing / investor presentation before acting.
DalalBaazaar Thesis
🔴Business QualityWeak7.5/20
🔴Financial HealthStretched8.4/20
🟢GrowthStrong13/20
🔴ProfitabilityWeak5/15
🔴ValuationDemanding5.1/15
🔴RiskHigh2.5/10
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. 4 high-severity red flags sit above this conclusion and should be read first.
