SecMark Consultancy Limited

Industrials — Consulting Services · NSE

₹154.85+₹3.64 (+2.41%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

SecMark Consultancy Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services to financial market participants in the areas of compliance, operations, software development, risk management, and others.

IndustryConsulting Services

SectorIndustrials

Employees101

Annual revenue₹38 Cr

How does it make money?

Turns over ₹38 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 101 employees supports ₹37.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹37.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. 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?Some evidence

ROCE of 15.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +115% while net margin moved -123% 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+115%

Margin effect-123%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 50.6x is demanding — it needs sustained high growth to justify
✗ P/E is 64% above its own historical median of 30.9x — expensive by its own standards
✗ P/B of 6.91x is a steep premium to book

Quality vs. Valuation

Company Quality

77/ 100

Good

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

Valuation

44/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

50.6x

1.3Y Median

30.9x

16 monthly readings · mean 37.8x · range 25.6x–67.5x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 64% above its 1.3y median of 30.9x. 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 43% below the peer median of 88.8x.

vs. its own history

Expensive

30.9x median over 16 months · +64%

vs. sector peers

Cheap

88.8x median of 3 peers · -43%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -23.8% to 22.1% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -28.4% to 11.0%.
Return on capital is rising
ROCE has improved from -35.7% to 15.3%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Debt is increasingFinancial
Total debt is up 27% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -23.8% to 22.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 43% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 64% 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.
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

1Revenue growth stays above 22% a year✓ 29.1% CAGR
Latest reported year was 55.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹170 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

50.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.91x

Rich

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

EPS (TTM)

₹3.06

Profitable

Profitable on a per-share basis

ROE

11.0%

Moderate

Moderate capital efficiency

ROCE

15.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.55x

Low

Conservative leverage

Revenue Growth (YoY)

55.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-40.2%

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

Operating Margin

-4.1%

Weak

Thin margins leave little room for error

Net Margin

8.0%

Average

Average bottom-line conversion

Current Ratio

1.35

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

71%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

143.3 / 138.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

72.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹17 Cr	₹25 Cr	₹35 Cr	₹38 Cr	+29.1%
EBITDA	-₹4 Cr	₹2 Cr	₹10 Cr	₹8 Cr	—
EBITDA Margin	-23.8%	7.9%	28.9%	22.1%	—
PAT (Net Profit)	-₹5 Cr	-₹2 Cr	₹4 Cr	₹3 Cr	—
EPS	₹-5.03	₹-2.34	₹4.12	₹2.42	—
ROE	-28.4%	-15.2%	20.9%	11.0%	—
ROCE	-35.7%	-13.2%	29.0%	15.3%	—
Total Debt	₹10 Cr	₹11 Cr	₹7 Cr	₹13 Cr	+8.2%
Free Cash Flow	-₹7 Cr	-₹3 Cr	₹9 Cr	₹4 Cr	—

🟢 Revenue has grown at 29.1% a year over 3 years.

🟢 EBITDA has turned positive, from -₹4 Cr to ₹8 Cr.

🟢 EBITDA Margin has risen from -23.8% to 22.1% over 3 years (+45.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹5 Cr to ₹3 Cr.

🟢 EPS has turned positive, from ₹-5.03 to ₹2.42.

🟢 ROE has risen from -28.4% to 11.0% over 3 years (+39.4 pts).

🟢 ROCE has risen from -35.7% to 15.3% over 3 years (+51.0 pts).

🔴 Total Debt has grown at 8.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹7 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹48 Cr

Total Liabilities

₹25 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.8%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

6 general

SecMark Consultancy (SECMARK.NS) Edges Lower to ₹143.8, Holding Within a Well-Defined Trading Band - Gap Down Bounce Plays

https://www.siam.in/, 21 Sept

Volume Gainers August 28: SecMark, Exxaro, Mastek Lead

HDFC Sky, 28 Aug

SecMark Consultancy Limited's (NSE:SECMARK) Share Price Not Quite Adding Up

Simply Wall Street, 12 Jan

SecMark Consultancy Ltd (NSE: SECMARK) Gains 15.09% as Stock Movement Draws Market Attention

Kalkine India, 31 Aug

Secmark Consultancy Ltd leads losers in 'B' group

Business Standard, 17 Aug

SecMark Consultancy incorporates wholly owned financial aggregation subsidiary

scanx.trade, 12 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth

MiddlingProfitability

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 5 tripwires holding · see Key things to watch ↑