Seshachal Technologies Limited

Technology — Software - Application · BSE

₹66.00₹0.00 (0.00%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Seshachal Technologies Limited engages in the development of software solutions for energy, hospitality, solvent oil businesses, and other businesses in India. The company also engages in finding technology problems and solutions.

IndustrySoftware - Application

SectorTechnology

Employees30

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 30 employees supports ₹42.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹42.8 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?Some evidence

ROCE of 35.9% 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 ROE32.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -81% while net margin moved -72% 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-81%

Margin effect-72%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 42.8% a year
✗ Profit has declined at 62.7% a year
✗ Profit fell 40.6% in the latest year

Quality vs. Valuation

Company Quality

44/ 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

No P/E — the company is lossmaking

EV/EBITDA

136.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 0.4% to 4.5% over 3 years.
Cash generation is improving
Free cash flow is up 57% over 3 years.
Return on capital is rising
ROCE has improved from 26.3% to 35.9%.
High return on capital employed
ROCE of 35.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 28.9% to 1.0% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Inventory building faster than salesFinancial
Inventory up 21% against revenue up -81% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 95% over 3 years.
🟡Low reported insider holdingOwnership
Reported insider holding is 3.2%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 35.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 0.4% to 4.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Returns on shareholder capital are falling
ROE has dropped from 28.9% to 1.0%. 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 3%✓ 4.5%
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 33%✓ 35.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹80 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

0.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.34

Loss-making

Negative earnings per share — the business is losing money

ROE

1.0%

Weak

Weak capital efficiency

ROCE

35.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

73.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-40.6%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.0%

Weak

Thin margins leave little room for error

Net Margin

-0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

56%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

65.1 / 68.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

62.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹69 Cr	₹77 Cr	₹7 Cr	₹13 Cr	-42.8%
EBITDA	₹0 Cr	₹1 Cr	₹0 Cr	₹1 Cr	+26.1%
EBITDA Margin	0.4%	0.7%	3.7%	4.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-62.7%
EPS	₹44.5	₹47.3	₹27.4	₹2.3	-62.8%
ROE	28.9%	24.0%	11.9%	1.0%	—
ROCE	26.3%	36.4%	15.0%	35.9%	—
Total Debt	₹1 Cr	—	₹1 Cr	—	—
Free Cash Flow	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+16.2%

🔴 Revenue has shrunk at 42.8% a year over 3 years.

🟢 EBITDA has grown at 26.1% a year over 3 years.

🟢 EBITDA Margin has risen from 0.4% to 4.5% over 3 years (+4.1 pts).

🔴 PAT (Net Profit) has shrunk at 62.7% a year over 3 years.

🔴 EPS has shrunk at 62.8% a year over 3 years.

🔴 ROE has fallen from 28.9% to 1.0% over 3 years (-27.9 pts).

🟢 ROCE has risen from 26.3% to 35.9% over 3 years (+9.6 pts).

🟢 Free Cash Flow has grown at 16.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹8 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

3.2%

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 negative5 general

Seshachal Technologies files EGM notice for Oct 19 to approve ₹41.8 lakh issue

scanx.trade, 04 Oct

Compare with SUPAN SYNTEC

Equitymaster, 13 Oct

Seshachal Technologies shifts EGM to virtual, adds ₹10 crore investment item

scanx.trade, 08 Oct

Seshachal Technologies shareholders approve all 32nd AGM resolutions

scanx.trade, 30 Sept

Seshachal Technologies profit falls 91% in FY26 as revenue doubles

scanx.trade, 08 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

SPACEINCUBA Stock Price and Chart — BSE:SPACEINCUBA

TradingView, 19 Sept

Watch Items

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.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation · Risk

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

All 3 tripwires holding · see Key things to watch ↑