Network People Services Technologies Limited

Technology — Software - Application · NSE

₹1,831.00+₹7.10 (+0.39%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

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

In simple words: Reasonable but unspectacular business quality, 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Network People Services Technologies Limited develops banking and payments infrastructure for Banks and financial institutions, payment aggregators, and consumers in India.

IndustrySoftware - Application

SectorTechnology

Employees354

Annual revenue₹195 Cr

How does it make money?

Turns over ₹195 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 354 employees supports ₹55.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹55.1 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?Little sign of one

Returns on capital of 12.5% 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.

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 +377% while net margin moved +31% 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+377%

Margin effect+31%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.26 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

65/ 100

Good

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

Valuation

49/ 100

Fair

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

84.2x

3Y Median

152.2x

40 monthly readings · mean 183.0x · range 41.2x–794.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 45% below its 3y median of 152.2x. 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 409% above the peer median of 16.5x.

vs. its own history

Cheap

152.2x median over 40 months · -45%

vs. sector peers

Expensive

16.5x median of 4 peers · +409%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

55.0x

PEG

1.00

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 30.4% to 33.2% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.8% to 9.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.6% to 12.5% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 290% over 3 years, from ₹4 Cr to ₹14 Cr.
🔴High leverageFinancial
Debt/Equity of 3.12x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 13058% against revenue up 377% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹93 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 30.4% to 33.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 45% 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.
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 3.12x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 13058% against revenue up 377%. 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 409% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 22.8% to 9.3%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 51% a year✓ 68.4% CAGR
Latest reported year was 68.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 31%✓ 33.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹93 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 12.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹3,820 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

84.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.38x

Rich

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

EPS (TTM)

₹21.75

Profitable

Profitable on a per-share basis

ROE

9.3%

Moderate

Moderate capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.12x

High

High leverage

Revenue Growth (YoY)

68.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

42.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.11%

Modest

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

Free Cash Flow

-₹93 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

17.3%

Good

Healthy core-business profitability

Net Margin

23.3%

Good

Strong bottom-line conversion

Current Ratio

7.42

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1796.9 / 1706.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹41 Cr	₹128 Cr	₹173 Cr	₹195 Cr	+68.4%
EBITDA	₹12 Cr	₹46 Cr	₹68 Cr	₹65 Cr	+73.4%
EBITDA Margin	30.4%	36.4%	39.2%	33.2%	—
PAT (Net Profit)	₹7 Cr	₹27 Cr	₹45 Cr	₹41 Cr	+84.3%
EPS	₹3.37	₹13.85	₹23.27	₹20.58	+82.8%
ROE	22.8%	46.6%	43.6%	9.3%	—
ROCE	27.6%	58.9%	55.3%	12.5%	—
Total Debt	₹4 Cr	₹3 Cr	₹10 Cr	₹14 Cr	+57.4%
Free Cash Flow	₹18 Cr	₹48 Cr	₹18 Cr	-₹93 Cr	—

🟢 Revenue has grown at 68.4% a year over 3 years.

🟢 EBITDA has grown at 73.4% a year over 3 years.

🟢 EBITDA Margin has risen from 30.4% to 33.2% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 84.3% a year over 3 years.

🟢 EPS has grown at 82.8% a year over 3 years.

🔴 ROE has fallen from 22.8% to 9.3% over 3 years (-13.5 pts).

🔴 ROCE has fallen from 27.6% to 12.5% over 3 years (-15.1 pts).

🔴 Total Debt has grown at 57.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹18 Cr to -₹93 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹508 Cr

Total Liabilities

₹67 Cr

Cash & Equivalents

₹277 Cr

Operating Cash Flow

-₹45 Cr

Capex

-₹47 Cr

Shareholding (proxy)

Institutional Holding

9.4%

Insider Holding

66.9%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

18 Sept 2026

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 positive3 mixed2 general

Here's Why Network People Services Technologies (NSE:NPST) Has Caught The Eye Of Investors

Simply Wall Street, 23 Sept

Multibagger small cap stock Network People Services share price surges 18% today: Here’s what is driving the rally

Livemint, 16 SeptPrice 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.

Network People Services Technologies Share Price Target 2027 to 2

Univest, 17 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Network People Services Technologies wins UPI TPAP order from Maharatna PSU

scanx.trade, 22 JunOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Network People Services Technologies Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

NPST Share Price Rises as Momentum Strengthens

Kalkine India, 16 SeptPrice 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.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth

MiddlingFinancial Health · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑