Orchasp Limited

Technology — Software - Application · NSE

₹1.12−₹0.12 (−9.68%)

DalalBaazaar Score

47 / 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: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Orchasp Limited provides computer programming, consultancy, and related services in India.

IndustrySoftware - Application

SectorTechnology

Employees58

Annual revenue₹21 Cr

How does it make money?

Turns over ₹21 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 58 employees supports ₹36.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹36.6 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?Little sign of one

Returns on capital of 0.9% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -9% while net margin moved +232% 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-9%

Margin effect+232%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.30 — 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

43/ 100

Weak

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

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

37.3x

2Y Median

90.0x

22 monthly readings · mean 79.2x · range 37.3x–118.3x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 59% below its 2y median of 90.0x. 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 126% above the peer median of 16.5x.

vs. its own history

Cheap

90.0x median over 22 months · -59%

vs. sector peers

Expensive

16.5x median of 4 peers · +126%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

41.9x

PEG

0.84

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 65% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 6.02x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 55% against revenue up -9% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 207% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 65% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 59% 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.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 55% against revenue up -9%. 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 126% 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

1EBITDA margin holds above 3%✓ 5.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 0.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 90.0x✓ 37.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹39 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.3x

Fair

Fairly valued against the generic band

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.03

Profitable

Profitable on a per-share basis

ROE

0.9%

Weak

Weak capital efficiency

ROCE

0.9%

Weak

Low return on total capital employed

Debt/Equity

6.02x

High

High leverage

Revenue Growth (YoY)

-73.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-50.0%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-16.9%

Weak

Thin margins leave little room for error

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

1.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.3 / 1.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹23 Cr	₹13 Cr	₹21 Cr	₹21 Cr	-3.2%
EBITDA	₹1 Cr	₹2 Cr	-₹10 Cr	₹1 Cr	-5.9%
EBITDA Margin	5.6%	11.5%	-49.0%	5.1%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	-₹11 Cr	₹1 Cr	+44.3%
EPS	₹0.03	₹0.03	₹-0.42	₹0.03	+0.0%
ROE	0.3%	0.6%	-9.4%	0.9%	—
ROCE	1.2%	1.4%	-9.2%	0.9%	—
Total Debt	₹21 Cr	₹15 Cr	₹16 Cr	₹7 Cr	-29.6%
Free Cash Flow	₹0 Cr	₹0 Cr	-₹16 Cr	-₹4 Cr	—

🔴 Revenue has shrunk at 3.2% a year over 3 years.

🔴 EBITDA has shrunk at 5.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.1% over 3 years.

🟢 PAT (Net Profit) has grown at 44.3% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (0.0% a year).

🟡 ROE has held roughly flat at 0.9% over 3 years.

🟡 ROCE has held roughly flat at 0.9% over 3 years.

🟢 Total Debt has shrunk at 29.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹232 Cr

Total Liabilities

₹110 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

1.5%

Insider Holding

50.2%

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 positive2 mixed3 general

Orchasp (ORCHASP) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Orchasp Share Price Target 2026: Bull Case Rs 5.00, Bear Case Rs

Univest, 02 JulAnalyst view

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

Orchasp revises preferential issue dilution to 4.15% from 2.12%

scanx.trade, 24 Aug

Orchasp Ltd leads losers in 'B' group

Business Standard, 17 Sept

Orchasp Limited Slips 4.2% to ₹1.37: Stock Nears Critical Support at ₹1.30 - Buyback Factor

siam.in, 31 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Why Is Orchasp Share Price Falling Key Reasons 2026

Univest, 23 JunPrice 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.

Watch Items

Revenue growth is negative (-73.1%) on the latest reported period — check if this is one-off or a trend.
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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health · Growth

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑