Plada Infotech Services Limited

Sector n/a · NSE

₹30.05₹0.00 (0.00%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:52 pm

Understanding the Business

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

How does it make money?

Turns over ₹73 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 12.7% 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.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +17% while net margin moved -37% 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+17%

Margin effect-37%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.4% — barely ahead of inflation
✗ Profit has declined at 9.6% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Profit fell 8.3% in the latest year

Quality vs. Valuation

Company Quality

41/ 100

Weak

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.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

6.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 31.1% to 7.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.6% to 12.7% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 288% against revenue up 17% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 10843% against revenue up 17% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 26% 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?

The debt load needs earnings to hold up
Debt is 3.1x 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 288% against revenue up 17%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 31.1% to 7.1%. 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

1EBITDA margin holds above 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 5.4% CAGR
Latest reported year was 8.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 8 neutral · 2 weak

Market Cap

₹26 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

7.1%

Weak

Weak capital efficiency

ROCE

12.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.75x

Moderate

Moderate leverage

Revenue Growth (YoY)

8.4%

Modest

Modest growth

Profit Growth (YoY)

-8.3%

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 generative

Generates cash even after funding its capex

More Metrics

Gross Margin

100.0%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.94

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

12.5 / 11.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹62 Cr	₹63 Cr	₹67 Cr	₹73 Cr	+5.4%
EBITDA	₹5 Cr	₹5 Cr	₹5 Cr	₹6 Cr	+4.9%
EBITDA Margin	8.3%	8.5%	7.3%	8.1%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹2 Cr	₹2 Cr	-9.6%
EPS	₹2.73	₹3.68	—	—	—
ROE	31.1%	12.1%	8.1%	7.1%	—
ROCE	25.6%	15.2%	12.6%	12.7%	—
Total Debt	₹17 Cr	₹14 Cr	₹17 Cr	₹18 Cr	+3.4%
Free Cash Flow	₹4 Cr	-₹8 Cr	-₹0 Cr	₹4 Cr	-3.7%

🟢 Revenue has grown at 5.4% a year over 3 years.

🟢 EBITDA has grown at 4.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 8.1% over 3 years.

🔴 PAT (Net Profit) has shrunk at 9.6% a year over 3 years.

🔴 ROE has fallen from 31.1% to 7.1% over 3 years (-24.0 pts).

🔴 ROCE has fallen from 25.6% to 12.7% over 3 years (-12.9 pts).

🔴 Total Debt has grown at 3.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 3.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹51 Cr

Total Liabilities

₹26 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Recent News

6 general

Plada Infotech share price debuts at 23% premium at ₹59 on NSE SME

Livemint, 13 Oct

Strong debut: Plada Infotech lists at 23% premium to IPO price on NSE SME

Moneycontrol.com, 13 Oct

1,714,800 Equity Shares of Plada Infotech Services Limited are subject to a Lock-Up Agreement Ending on 14-OCT-2026.

www.marketscreener.com, 14 Oct

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Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

StrongFinancial Health

MiddlingValuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑