Sasken Technologies Limited

Technology — Information Technology Services · NSE

₹1,728.00+₹70.80 (+4.27%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

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, 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, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Sasken Technologies Limited, together with its subsidiaries, provides product engineering and digital transformation services in India, North America, Europe, the Middles East, and the Asia Pacific. It operates in two segments, Software Services and Product Solutions.

IndustryInformation Technology Services

SectorTechnology

Employees1,828

Annual revenue₹1,113 Cr

How does it make money?

Turns over ₹1,113 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 1,828 employees supports ₹60.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹60.9 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 8.6% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +149% while net margin moved -78% 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+149%

Margin effect-78%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 8.6% is below 10% — capital is not working hard
✗ ROCE has fallen by 8.3 points — returns are eroding
✗ EBITDA margin of 10.7% is thin — little cushion if costs rise
✗ Net margin of 4.8% is slim
• Revenue has compounded at 35.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

40/ 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

37.9x

3Y Median

32.6x

40 monthly readings · mean 34.9x · range 14.3x–68.3x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 17% above its 3y median of 32.6x. 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 129% above the peer median of 16.5x.

vs. its own history

Fair

32.6x median over 40 months · +17%

vs. sector peers

Expensive

16.5x median of 4 peers · +129%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

21.8x

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 13.8% to 6.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.0% to 8.6% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 745% over 3 years, from ₹3 Cr to ₹28 Cr.
🔴High leverageFinancial
Debt/Equity of 3.21x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 14.0 points, from 24.7% to 10.7%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹36 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 46% 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 24.7% to 10.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.21x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 129% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 13.8% to 6.3%. 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.
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 27% a year✓ 35.5% CAGR
Latest reported year was 125.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹36 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 8%✓ 8.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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 · 5 neutral · 3 weak

Market Cap

₹2,625 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.07x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹45.54

Profitable

Profitable on a per-share basis

ROE

7.0%

Weak

Weak capital efficiency

ROCE

8.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.21x

High

High leverage

Revenue Growth (YoY)

125.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

144.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.50%

Modest

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

Free Cash Flow

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

29.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

2.9%

Weak

Assets generate little profit

Operating Margin

6.8%

Average

Average margins

Net Margin

4.8%

Average

Average bottom-line conversion

Current Ratio

2.17

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1677.5 / 1798.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹447 Cr	₹406 Cr	₹551 Cr	₹1,113 Cr	+35.5%
EBITDA	₹111 Cr	₹45 Cr	₹42 Cr	₹119 Cr	+2.5%
EBITDA Margin	24.7%	11.2%	7.7%	10.7%	—
PAT (Net Profit)	₹99 Cr	₹79 Cr	₹50 Cr	₹54 Cr	-18.5%
EPS	₹65.58	₹51.59	₹33.04	₹35.43	-18.6%
ROE	13.8%	10.2%	6.4%	6.3%	—
ROCE	17.0%	11.7%	7.7%	8.6%	—
Total Debt	₹3 Cr	₹8 Cr	₹26 Cr	₹28 Cr	+103.7%
Free Cash Flow	₹64 Cr	₹52 Cr	-₹67 Cr	-₹36 Cr	—

🟢 Revenue has grown at 35.5% a year over 3 years.

🟢 EBITDA has grown at 2.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 24.7% to 10.7% over 3 years (-14.0 pts).

🔴 PAT (Net Profit) has shrunk at 18.5% a year over 3 years.

🔴 EPS has shrunk at 18.6% a year over 3 years.

🔴 ROE has fallen from 13.8% to 6.3% over 3 years (-7.5 pts).

🔴 ROCE has fallen from 17.0% to 8.6% over 3 years (-8.3 pts).

🔴 Total Debt has grown at 103.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹64 Cr to -₹36 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,166 Cr

Total Liabilities

₹291 Cr

Cash & Equivalents

₹56 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

9.3%

Insider Holding

56.4%

Corporate Actions

Dividend Rate

₹26

Ex-Dividend Date

24 Jul 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

Why Is Sasken Technologies Share Price Falling Key Reasons 2026

Univest, 29 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.

Sasken Technologies Schedules Investor Meet for May 22

scanx.trade, 11 Oct

Sasken Technologies Share Price Jumps Over 11% After Q4FY26 Results; Revenue Surges 126%, Announces Rs 25 Dividend

Dalal Street Investment Journal, 12 MayCapital return

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

Sasken Technologies Limited's (NSE:SASKEN) most bullish insider is CEO Rajiv Mody, and their holdings value went up by 18% last week

Simply Wall Street, 30 DecAnalyst view

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

Sasken Tech Reports Q1 Consolidated Net Profit of 248m Rupees vs 94m YoY

Sahi, 03 AugResults

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

Sasken Tech Standalone March 2026 Net Sales at Rs 144.68 crore, up 26.43% Y-o-Y

Moneycontrol.com, 11 May

Watch Items

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

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation · Risk

WeakBusiness Quality · Profitability

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. 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 ↑