NINtec Systems Limited

Technology — Information Technology Services · NSE

₹859.00+₹32.70 (+3.96%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

NINtec Systems Limited provides software development services and solutions in India.

IndustryInformation Technology Services

SectorTechnology

Employees441

Annual revenue₹170 Cr

How does it make money?

Turns over ₹170 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 441 employees supports ₹38.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹38.6 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 44.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 34.9% 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.

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 +427% while net margin moved +9% 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+427%

Margin effect+9%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 47.5x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 56.4x
✗ P/B of 17.40x is a steep premium to book

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

47.5x

3Y Median

56.4x

40 monthly readings · mean 79.3x · range 23.0x–190.4x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 3y median of 56.4x. 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 187% above the peer median of 16.5x.

vs. its own history

Fair

56.4x median over 40 months · -16%

vs. sector peers

Expensive

16.5x median of 4 peers · +187%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

33.5x

PEG

0.60

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 22.6% to 27.4% over 3 years.
Cash generation is improving
Free cash flow is up 311% over 3 years.
Return on equity is rising
ROE has improved from 28.7% to 34.9%.
Return on capital is rising
ROCE has improved from 37.0% to 44.6%.
High return on capital employed
ROCE of 44.6% is the mark of a business that converts capital into profit efficiently.
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

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 2.06x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 1267% against revenue up 427% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 44.6% 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.
Margin expansion has further to run
EBITDA margin has risen from 22.6% to 27.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Leverage amplifies any setback
Debt/Equity of 2.06x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 1267% against revenue up 427%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 187% 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

1Revenue growth stays above 56% a year✓ 74.0% CAGR
Latest reported year was 18.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 27.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹26 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 42%✓ 44.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 2 neutral · 3 weak

Market Cap

₹1,596 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

47.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

17.40x

Rich

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

EPS (TTM)

₹18.07

Profitable

Profitable on a per-share basis

ROE

34.9%

Strong

Strong capital efficiency

ROCE

44.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.06x

High

High leverage

Revenue Growth (YoY)

18.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹26 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

25.0%

Good

Healthy core-business profitability

Net Margin

18.9%

Good

Strong bottom-line conversion

Current Ratio

2.86

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.20

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

774.9 / 741.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

79.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹32 Cr	₹83 Cr	₹140 Cr	₹170 Cr	+74.0%
EBITDA	₹7 Cr	₹21 Cr	₹36 Cr	₹47 Cr	+85.6%
EBITDA Margin	22.6%	24.9%	25.7%	27.4%	—
PAT (Net Profit)	₹6 Cr	₹16 Cr	₹26 Cr	₹32 Cr	+79.3%
EPS	₹2.99	₹8.35	₹14.17	₹17.23	+79.3%
ROE	28.7%	44.4%	42.9%	34.9%	—
ROCE	37.0%	53.7%	54.8%	44.6%	—
Total Debt	—	₹2 Cr	₹2 Cr	₹2 Cr	—
Free Cash Flow	₹6 Cr	₹7 Cr	₹18 Cr	₹26 Cr	+60.1%

🟢 Revenue has grown at 74.0% a year over 3 years.

🟢 EBITDA has grown at 85.6% a year over 3 years.

🟢 EBITDA Margin has risen from 22.6% to 27.4% over 3 years (+4.8 pts).

🟢 PAT (Net Profit) has grown at 79.3% a year over 3 years.

🟢 EPS has grown at 79.3% a year over 3 years.

🟢 ROE has risen from 28.7% to 34.9% over 3 years (+6.3 pts).

🟢 ROCE has risen from 37.0% to 44.6% over 3 years (+7.6 pts).

🟢 Free Cash Flow has grown at 60.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹144 Cr

Total Liabilities

₹53 Cr

Cash & Equivalents

₹39 Cr

Operating Cash Flow

₹26 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.7%

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

2 mixed4 general

NINtec Systems (NSE:NINSYS) Strong Profits May Be Masking Some Underlying Issues

Simply Wall Street, 04 Jun

Nintec Systems Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 01 Oct

NINtec Systems closes trading window for insiders ahead of Q2FY27 results

scanx.trade, 25 SeptResults

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

MD & Director of NINtec Systems Niraj Gemawat Buys More Stock

Simply Wall Street, 04 Jul

NINtec Systems Share Price Surges 13.65% Above Key Levels

Kalkine India, 31 MarPrice move

🟡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.

NINtec Systems Ltd is Rated Hold

MarketsMojo, 08 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

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

All 5 tripwires holding · see Key things to watch ↑