Orient Technologies Limited

Technology — Information Technology Services · NSE

₹230.10+₹0.78 (+0.34%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

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

What does this company do?

Orient Technologies Limited provides information technology services in India and internationally. It operates through IT Infrastructure Solutions; and IT Infrastructure and Application Services segments.

IndustryInformation Technology Services

SectorTechnology

Employees1,602

Annual revenue₹870 Cr

How does it make money?

Turns over ₹870 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 1,602 employees supports ₹54.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹54.3 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 2.6% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +63% while net margin moved -93% 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+63%

Margin effect-93%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 1.4% is weak
✗ ROE has fallen by 28.4 points over the period

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

29/ 100

Expensive

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

1045.9x

2Y Median

33.5x

28 monthly readings · mean 59.6x · range 19.2x–239.0x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 3023% above its 2y median of 33.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 6220% above the peer median of 16.5x.

vs. its own history

Expensive

33.5x median over 28 months · +3023%

vs. sector peers

Expensive

16.5x median of 4 peers · +6220%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 29.7% to 1.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 37.0% to 2.6% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 2 high · 4 watch

🔴Debt has risen sharplyFinancial
Total debt is up 210% over 3 years, from ₹20 Cr to ₹62 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 120% against revenue up 63% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 147.5x to 3.1x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹91 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 88% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 4.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 9.4% to 5.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 120% against revenue up 63%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 3023% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 29.7% to 1.4%. 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.
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 13% a year✓ 17.6% 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 3%✓ 5.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹91 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

₹1,054 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1045.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.13x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.22

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

2.6%

Weak

Low return on total capital employed

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

-5.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-48.4%

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

-₹91 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

3.2%

Weak

Thin margins leave little room for error

Net Margin

-0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

232.8 / 240.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹535 Cr	₹603 Cr	₹840 Cr	₹870 Cr	+17.6%
EBITDA	₹51 Cr	₹58 Cr	₹73 Cr	₹46 Cr	-2.8%
EBITDA Margin	9.4%	9.7%	8.7%	5.3%	—
PAT (Net Profit)	₹38 Cr	₹41 Cr	₹50 Cr	₹5 Cr	-50.8%
EPS	₹8.36	₹9.05	₹11.68	₹1	-50.7%
ROE	29.7%	23.6%	15.3%	1.4%	—
ROCE	37.0%	30.2%	20.2%	2.6%	—
Total Debt	₹20 Cr	₹11 Cr	₹6 Cr	₹62 Cr	+45.8%
Free Cash Flow	-₹2 Cr	₹18 Cr	-₹37 Cr	-₹91 Cr	—

🟢 Revenue has grown at 17.6% a year over 3 years.

🔴 EBITDA has shrunk at 2.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.4% to 5.3% over 3 years (-4.1 pts).

🔴 PAT (Net Profit) has shrunk at 50.8% a year over 3 years.

🔴 EPS has shrunk at 50.7% a year over 3 years.

🔴 ROE has fallen from 29.7% to 1.4% over 3 years (-28.4 pts).

🔴 ROCE has fallen from 37.0% to 2.6% over 3 years (-34.4 pts).

🔴 Total Debt has grown at 45.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹570 Cr

Total Liabilities

₹233 Cr

Cash & Equivalents

₹61 Cr

Operating Cash Flow

-₹19 Cr

Capex

-₹72 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.2%

Corporate Actions

Ex-Dividend Date

22 Nov 2024

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 mixed1 negative4 general

Orient Technologies FY26 profit falls 94% to ₹279 lakh

scanx.trade, 15 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Orient Technologies Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Orient Technologies Share Price Forecast: 3 Year Outlook to 2030

Univest, 22 Jul

Orient Technologies shares rally 17% on signing 3-year cybersecurity contract with Securonix

Upstox, 10 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.

Small-cap Orient Technologies shares to be in focus on Monday after ₹76 crore NPCI order

Livemint, 24 Jul

Orient Technologies Stock Recovery and Technical Outlook

Kalkine India, 07 Oct

Watch Items

Revenue growth is negative (-5.0%) 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.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · 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.

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