Senthil Infotek Limited

Technology — Information Technology Services · BSE

₹44.06₹0.00 (0.00%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Senthil Infotek Limited engages in the information technology industry in India.

IndustryInformation Technology Services

SectorTechnology

Employees2

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹4.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹4.2 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 0.3% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -28% while net margin moved +95% 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-28%

Margin effect+95%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROE of 0.2% is weak

Quality vs. Valuation

Company Quality

37/ 100

Weak

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

Valuation

20/ 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

No P/E — the company is lossmaking

EV/EBITDA

2767.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 5.0% to 8.5% over 3 years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.0% to 8.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

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

1EBITDA margin holds above 6%✓ 8.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 0.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ 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

1 good · 3 neutral · 7 weak

Market Cap

₹22 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

10.27x

Rich

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

EPS (TTM)

₹-0.03

Loss-making

Negative earnings per share — the business is losing money

ROE

0.2%

Weak

Weak capital efficiency

ROCE

0.3%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-16.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

100.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-72.9%

Weak

Thin margins leave little room for error

Net Margin

-19.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

219.53

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.92

Market-like

Moves roughly in line with the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

44.1 / 42.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-10.3%
EBITDA	₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	+6.9%
EBITDA Margin	5.0%	4.7%	-91.2%	8.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹2 Cr	₹0 Cr	+12.1%
EPS	₹0.01	₹0.01	₹-4.21	—	—
ROE	0.1%	0.1%	-80.1%	0.2%	—
ROCE	0.1%	0.1%	-80.1%	0.3%	—
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 10.3% a year over 3 years.

🟢 EBITDA has grown at 6.9% a year over 3 years.

🟢 EBITDA Margin has risen from 5.0% to 8.5% over 3 years (+3.5 pts).

🟢 PAT (Net Profit) has grown at 12.1% a year over 3 years.

🟡 ROE has held roughly flat at 0.2% over 3 years.

🟡 ROCE has held roughly flat at 0.3% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.7%

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 positive5 general

Senthil Infotek promoter Pitchandi Chellamani exits 40.78% stake

scanx.trade, 06 Oct

Senthil Infotek Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 31 Aug

Gogineni Srinivas acquired 40.78% stake in Senthil Infotek Limited.

www.marketscreener.com, 05 Oct

Gogineni Srinivas acquires 40.78% stake in Senthil Infotek

scanx.trade, 05 Oct

Patel KNR Heavy Infrastructures standalone net profit rises 767.42% in the June 2026 quarter

Business Standard, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

SENTHIL INFOTEK LTD Share Price

Upstox, 18 Aug

Watch Items

Revenue growth is negative (-16.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 3 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑