Netweb Technologies India Limited

Technology — Computer Hardware · NSE

₹4,733.00+₹20.90 (+0.44%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by a beta above 1.3, so it swings harder than the index, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:02 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Netweb Technologies India Limited designs, manufactures, and sells high-end computing solutions in India.

IndustryComputer Hardware

SectorTechnology

Employees569

Annual revenue₹2,184 Cr

How does it make money?

Turns over ₹2,184 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 569 employees supports ₹3.84 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin13.3%

Net margin9.4%

Revenue / employee₹3.84 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 38.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 28.5% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE38.8%

ROE28.5%

Peer median ROE32.0%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 20.5% and earnings to grow about 24.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.5%

Est. earnings growth+24.4%

Analysts4

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 +395% while net margin moved -11% 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+395%

Margin effect-11%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.77 — amplifies market moves in both directions
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

68/ 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

103.1x

3Y Median

163.7x

40 monthly readings · mean 168.2x · range 89.5x–309.9x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 37% below its 3y median of 163.7x. 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 523% above the peer median of 16.5x.

vs. its own history

Cheap

163.7x median over 40 months · -37%

vs. sector peers

Expensive

16.5x median of 4 peers · +523%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

103.1x

P/B

37.16x

EV/EBITDA

96.6x

PEG

1.62

Dividend Yield

0.06%

What's Good / What's Bad

🟢 What's Going Well4

Cash generation is improving
Free cash flow is up 1050% over 3 years.
High return on capital employed
ROCE of 38.8% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 103.1x the stock trades 37% below its own median of 163.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 16.0% to 13.3% over 3 years.
Debt is rising
Total debt is up 693% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 50.1% to 28.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 60.7% to 38.8% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 1388% against revenue growth of 395% — stock may not be moving.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 693% over 3 years, from ₹36 Cr to ₹282 Cr.
🔴Inventory building faster than salesFinancial
Inventory up 1388% against revenue up 395% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 2.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 38.8% 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 37% 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 ₹160 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 16.0% to 13.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 523% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 50.1% to 28.5%. 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.
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

1Revenue growth stays above 53% a year✓ 70.4% CAGR
Latest reported year was 172.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 13.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹160 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 36%✓ 38.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹28,137 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

103.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

37.16x

Rich

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

EPS (TTM)

₹45.9

Profitable

Profitable on a per-share basis

ROE

28.5%

Strong

Strong capital efficiency

ROCE

38.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.39x

Low

Conservative leverage

Revenue Growth (YoY)

172.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

178.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.06%

Modest

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

Free Cash Flow

₹160 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹4,733

P/E (Forward)

56.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

14.3%

Average

Average margins

Net Margin

9.6%

Average

Average bottom-line conversion

Current Ratio

1.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.77

High swing

Swings more than the market in both directions

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4729.5 / 4944.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹441 Cr	₹724 Cr	₹1,143 Cr	₹2,184 Cr	+70.4%
EBITDA	₹70 Cr	₹114 Cr	₹167 Cr	₹291 Cr	+60.4%
EBITDA Margin	16.0%	15.8%	14.6%	13.3%	—
PAT (Net Profit)	₹47 Cr	₹76 Cr	₹114 Cr	₹206 Cr	+63.7%
EPS	₹8.37	₹13.88	₹20.11	₹36.3	+63.1%
ROE	50.1%	18.0%	21.5%	28.5%	—
ROCE	60.7%	24.8%	28.9%	38.8%	—
Total Debt	₹36 Cr	₹10 Cr	₹8 Cr	₹282 Cr	+99.4%
Free Cash Flow	₹14 Cr	-₹1 Cr	-₹39 Cr	₹160 Cr	+125.7%

🟢 Revenue has grown at 70.4% a year over 3 years.

🟢 EBITDA has grown at 60.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.0% to 13.3% over 3 years (-2.7 pts).

🟢 PAT (Net Profit) has grown at 63.7% a year over 3 years.

🟢 EPS has grown at 63.1% a year over 3 years.

🔴 ROE has fallen from 50.1% to 28.5% over 3 years (-21.7 pts).

🔴 ROCE has fallen from 60.7% to 38.8% over 3 years (-21.9 pts).

🔴 Total Debt has grown at 99.4% a year over 3 years.

🟢 Free Cash Flow has grown at 125.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,255 Cr

Total Liabilities

₹1,532 Cr

Total Debt

₹282 Cr

Cash & Equivalents

₹366 Cr

Operating Cash Flow

₹171 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

11.7%

Insider Holding

64.2%

Corporate Actions

Dividend Rate

₹3

Ex-Dividend Date

07 Aug 2026

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹5,424.5

+14.6% vs CMP

Target Range

₹5,250 – ₹5,698

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 positive1 mixed4 general

Netweb Technologies Q1 FY27: PAT Surges 179.94%, AI Segment Drives Record Revenue

scanx.trade, 18 OctResults

🟢Potentially positiveA record operating figure, if it holds, feeds directly into the growth and profitability inputs on this page.

Stock to buy today: Netweb Technologies India (₹5,001.45) – BUY

BusinessLine, 16 Oct

Netweb Technologies Opens QIP With Minimum Share Price Set At ₹4,885.9

Sahi, 17 Aug

Up 50% in 6 months, Netweb Technologies shares fall 5% today: Should you buy, sell, or hold? Experts suggest this

Livemint, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Netweb Technologies India Ltd Hits Intraday Low Amid Price Pressure

MarketsMojo, 15 Oct

What The Netweb Technologies India Debate Was Really About

Simply Wall Street, 01 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate12.6/20

🟢Financial HealthStrong14.6/20

🟢GrowthStrong14.7/20

🟡ProfitabilityModerate9.3/15

🔴ValuationDemanding6.7/15

🔴RiskHigh3.9/10

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. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 53% a year70.4% CAGR
✓EBITDA margin holds above 11%13.3%
✓Free cash flow remains positive₹160 Cr
✓Debt / EBITDA stays below 2x1.0x
✓ROCE stays above 36%38.8%