Slone Infosystems Limited

Sector n/a · NSE

₹160.00−₹2.00 (−1.23%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

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

How does it make money?

Turns over ₹241 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.5%. Returns that high normally get competed away; when they persist, something is protecting them. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +698% while net margin moved +51% 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+698%

Margin effect+51%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

88/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

5.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Cash generation is improving
Free cash flow is up 354% over 3 years.
High return on capital employed
ROCE of 26.5% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 35.5% to 18.9% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 242% over 3 years, from ₹3 Cr to ₹9 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 1920% against revenue up 698% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 15933% against revenue up 698% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.5% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹5 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Sales are being booked faster than collected
Receivables are up 1920% against revenue up 698%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 35.5% to 18.9%. 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.
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

1Revenue growth stays above 75% a year✓ 99.8% CAGR
Latest reported year was 14.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 23%✓ 26.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹84 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

18.9%

Strong

Strong capital efficiency

ROCE

26.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

14.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

21.6%

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

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

8.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

3.7%

Average

Average bottom-line conversion

Current Ratio

1.48

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

152.0 / 158.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

16.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹30 Cr	₹61 Cr	₹211 Cr	₹241 Cr	+99.8%
EBITDA	₹2 Cr	₹7 Cr	₹12 Cr	₹17 Cr	+116.8%
EBITDA Margin	5.4%	11.2%	5.9%	6.9%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹7 Cr	₹9 Cr	+129.4%
EPS	₹1.42	₹7.95	₹14.44	—	—
ROE	35.5%	31.7%	19.0%	18.9%	—
ROCE	24.7%	39.6%	27.4%	26.5%	—
Total Debt	₹3 Cr	₹2 Cr	₹4 Cr	₹9 Cr	+50.6%
Free Cash Flow	₹1 Cr	-₹6 Cr	-₹16 Cr	₹5 Cr	+65.5%

🟢 Revenue has grown at 99.8% a year over 3 years.

🟢 EBITDA has grown at 116.8% a year over 3 years.

🟢 EBITDA Margin has risen from 5.4% to 6.9% over 3 years (+1.5 pts).

🟢 PAT (Net Profit) has grown at 129.4% a year over 3 years.

🔴 ROE has fallen from 35.5% to 18.9% over 3 years (-16.6 pts).

🟢 ROCE has risen from 24.7% to 26.5% over 3 years (+1.8 pts).

🔴 Total Debt has grown at 50.6% a year over 3 years.

🟢 Free Cash Flow has grown at 65.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹109 Cr

Total Liabilities

₹61 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹9 Cr

Recent News

6 general

Slone Infosystems Limited (NSE:SLONE) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?

Simply Wall Street, 08 Nov

Compare with

Equitymaster, 30 Sept

Slone Infosystems wins Rs 6.4 crore work order from Transline Technologies for laptop supply

scanx.trade, 09 Sept

Slone Infosystems के शेयर की कीमत में बंपर शुरुआत, NSE SME पर स्टॉक 50% प्रीमियम के साथ ₹118.50 पर खुला!

Alice Blue, 17 Jul

SLONE INFOSYSTEMS LIMITED Share Price

Upstox, 10 Oct

SME Action: Slone Infosystems IPO bought 616 times, Winsol Engineers booked 105x

Moneycontrol.com, 07 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑