Nihar Info Global Limited

Technology — Information Technology Services · BSE

₹4.40+₹0.19 (+4.51%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Nihar Info Global Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nihar Info Global Limited, together with its subsidiaries, engages in the software and e-commerce businesses in India. It operates through three segments: Rendering of Services; Sales of Goods through E-Commerce; and Trading Activities.

IndustryInformation Technology Services

SectorTechnology

Employees2

Annual revenue₹22 Cr

How does it make money?

Turns over ₹22 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹10.84 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin4.3%

Net margin3.2%

Revenue / employee₹10.84 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?Little sign of one

Returns on capital of 12.3% 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.

ROCE12.3%

ROE10.1%

Peer median ROE32.0%

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 +309% while net margin moved +92% 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+309%

Margin effect+92%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.18 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

88/ 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

2.9x

3Y Median

59.8x

40 monthly readings · mean 55.3x · range 6.7x–84.1x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 95% below its 3y median of 59.8x. 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 83% below the peer median of 16.5x.

vs. its own history

Cheap

59.8x median over 40 months · -95%

vs. sector peers

Cheap

16.5x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

2.9x

P/B

0.57x

EV/EBITDA

7.3x

PEG

0.03

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 0.7% to 10.1%.
Return on capital is rising
ROCE has improved from 2.0% to 12.3%.
Valuation below its historical average
At 2.9x the stock trades 95% below its own median of 59.8x.

🔴 What Needs Attention2

Debt is rising
Total debt is up 68% 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

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 68% over 3 years, from ₹1 Cr to ₹2 Cr.
🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 95% 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.
Cheaper than its peers
It trades 83% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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

1Revenue growth stays above 45% a year✓ 59.9% CAGR
Latest reported year was 5.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 9%✓ 12.3%
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

4 good · 5 neutral · 2 weak

Market Cap

₹5 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.9x

Cheap

Cheap against the generic band

P/B Ratio

0.57x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.54

Profitable

Profitable on a per-share basis

ROE

10.1%

Moderate

Moderate capital efficiency

ROCE

12.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

5.0%

Modest

Modest growth

Profit Growth (YoY)

-91.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹4.4

Operating Margin

1.2%

Weak

Thin margins leave little room for error

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

4.5 / 5.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹3 Cr	₹8 Cr	₹22 Cr	+59.9%
EBITDA	₹0 Cr	-₹4 Cr	-₹0 Cr	₹1 Cr	+48.9%
EBITDA Margin	5.4%	-109.7%	-0.9%	4.3%	—
PAT (Net Profit)	₹0 Cr	-₹4 Cr	-₹4 Cr	₹1 Cr	+98.7%
EPS	₹0.1	₹-3.63	₹-3.43	₹0.66	+87.6%
ROE	0.7%	-39.3%	-59.6%	10.1%	—
ROCE	2.0%	-35.5%	-51.2%	12.3%	—
Total Debt	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+18.8%
Free Cash Flow	-₹2 Cr	₹3 Cr	-₹0 Cr	-₹2 Cr	—

🟢 Revenue has grown at 59.9% a year over 3 years.

🟢 EBITDA has grown at 48.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 5.4% to 4.3% over 3 years (-1.0 pts).

🟢 PAT (Net Profit) has grown at 98.7% a year over 3 years.

🟢 EPS has grown at 87.6% a year over 3 years.

🟢 ROE has risen from 0.7% to 10.1% over 3 years (+9.5 pts).

🟢 ROCE has risen from 2.0% to 12.3% over 3 years (+10.3 pts).

🔴 Total Debt has grown at 18.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹12 Cr

Total Debt

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

47.8%

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

Compare with NIHAR INFO GLOBAL

Equitymaster, 09 Oct

Nihar Info Global expands digital outreach for GoldnSilver.shop

scanx.trade, 24 Sept

Nihar Info Global: શેરધારકોની મંજૂરી બાદ કંપનીમાં આવશે નવું ભંડોળ, સબસિડિયરી વેચવાની તૈયારી

Whalesbook, 05 Oct

Nihar Info Global Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Nihar Info Global shareholders approve director reappointments and auditor renewal

scanx.trade, 05 Oct

Nihar Info Global Q1FY27 Results: Revenue up 42%, net profit falls

scanx.trade, 12 SeptResults

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

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

🟡Business QualityAdequate10.2/20

🟡Financial HealthAdequate10.8/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

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

This thesis breaks if

✓Revenue growth stays above 45% a year59.9% CAGR
✓EBITDA margin holds above 2%4.3%
✗Debt / EBITDA stays below 2x2.6x
✗Free cash flow remains positive-₹2 Cr
✓ROCE stays above 9%12.3%