SecureKloud Technologies Limited

Technology — Software - Application · NSE

₹16.30+₹0.58 (+3.69%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

SecureKloud Technologies Limited provides information and technology services in India and the United States.

IndustrySoftware - Application

SectorTechnology

Employees96

Annual revenue₹37 Cr

How does it make money?

Turns over ₹37 Cr a year. Of every ₹100 of sales, about ₹-362 reaches shareholders as profit, with ₹-9 left at the operating level before interest, tax and depreciation. Each of its 96 employees supports ₹39.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-9.0%

Net margin-362.0%

Revenue / employee₹39.0 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.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -92% while net margin moved +3316% 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-92%

Margin effect+3316%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

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

Valuation

30/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

Not meaningful

P/B

—

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -14.4% to -9.0% over 3 years.
Debt is being paid down
Total debt is down 55% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.24 — near-term obligations exceed near-term assets.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -20.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹136 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.8x to -20.3x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.24 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -14.4% to -9.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 55% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -11%✓ -9.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -20.3x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹51 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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 · 4 neutral · 5 weak

Market Cap

₹54 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-5.66

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

22.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-1219.6%

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

₹51 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹16.3

Operating Margin

-6.6%

Weak

Thin margins leave little room for error

Net Margin

-5.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.24

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

16.2 / 17.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹458 Cr	₹340 Cr	₹102 Cr	₹37 Cr	-56.6%
EBITDA	-₹66 Cr	-₹62 Cr	-₹1 Cr	-₹3 Cr	—
EBITDA Margin	-14.4%	-18.3%	-0.7%	-9.0%	—
PAT (Net Profit)	-₹49 Cr	-₹36 Cr	-₹10 Cr	-₹136 Cr	—
EPS	₹-14.62	₹-10.86	₹-2.93	₹-40.04	—
ROE	-224.2%	—	-16.3%	—	—
ROCE	-81.1%	-339.1%	-10.4%	—	—
Total Debt	₹126 Cr	₹121 Cr	₹100 Cr	₹57 Cr	-23.3%
Free Cash Flow	-₹65 Cr	₹4 Cr	₹11 Cr	₹51 Cr	—

🔴 Revenue has shrunk at 56.6% a year over 3 years.

🟢 EBITDA Margin has risen from -14.4% to -9.0% over 3 years (+5.4 pts).

🟢 Total Debt has shrunk at 23.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹65 Cr to ₹51 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹96 Cr

Total Debt

₹57 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹51 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

46.7%

Corporate Actions

Ex-Dividend Date

25 Sept 2017

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

3 mixed3 general

Why Is SECUREKLOUD 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.

Securekloud Technologies Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 28 Aug

Securekloud Shares Hit 10% Upper Circuit, Surge 65% in Week

HDFC Sky, 21 NovPrice 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.

SecureKloud Technologies discloses voting results of 41st AGM

scanx.trade, 25 SeptResults

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

Securekloud Technologies Share: Bull Case vs Bear Case for 2026

Univest, 24 Sept

SecureKloud Technologies sets Sep 25 AGM with major related party deals

scanx.trade, 02 Sept

Watch Items

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.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

SecureKloud Technologies Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -11%-9.0%
✗Interest cover stays above 3x-20.3x
✓Free cash flow remains positive₹51 Cr