Smartlink Holdings Limited

Technology — Communication Equipment · NSE

₹217.00+₹2.55 (+1.19%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Smartlink Holdings Limited, together with its subsidiaries, sources, develops, manufactures, markets, distributes, and services networking products in India and internationally.

IndustryCommunication Equipment

SectorTechnology

Employees200

Annual revenue₹264 Cr

How does it make money?

Turns over ₹264 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 200 employees supports ₹1.32 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.32 Cr

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 8.5% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +68% while net margin moved -59% 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+68%

Margin effect-59%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 8.5% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 7.2% is thin — little cushion if costs rise
✗ Net margin of 5.6% is slim
• Revenue has compounded at 19.0% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

83/ 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.

Historical Valuation

Current P/E

13.1x

3Y Median

19.8x

40 monthly readings · mean 19.2x · range 8.7x–41.0x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 34% below its 3y median of 19.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 21% below the peer median of 16.5x.

vs. its own history

Cheap

19.8x median over 40 months · -34%

vs. sector peers

Cheap

16.5x median of 4 peers · -21%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

11.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 2.7% to 7.2% over 3 years.
Debt is being paid down
Total debt is down 93% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.5% to 6.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.1% to 8.5% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 122% against revenue up 68% — sales are being booked faster than they are collected.
🟡Profit is decliningFinancial
Net profit is down 32% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.7% to 7.2%. 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 93% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 34% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 21% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 122% against revenue up 68%. 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 10.5% to 6.3%. 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

1Revenue growth stays above 14% a year✓ 19.0% CAGR
Latest reported year was 61.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹216 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.1x

Cheap

Cheap against the generic band

P/B Ratio

1.03x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹16.62

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

8.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.19x

Moderate

Moderate leverage

Revenue Growth (YoY)

61.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

157.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.92%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.4%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

2.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

82%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

217.1 / 218.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹157 Cr	₹194 Cr	₹210 Cr	₹264 Cr	+19.0%
EBITDA	₹4 Cr	₹10 Cr	₹6 Cr	₹19 Cr	+65.0%
EBITDA Margin	2.7%	5.1%	3.0%	7.2%	—
PAT (Net Profit)	₹19 Cr	₹7 Cr	₹7 Cr	₹13 Cr	-11.9%
EPS	₹19.29	₹7.08	₹6.62	₹13.18	-11.9%
ROE	10.5%	3.7%	3.4%	6.3%	—
ROCE	11.1%	5.5%	3.4%	8.5%	—
Total Debt	₹34 Cr	₹32 Cr	₹4 Cr	₹3 Cr	-57.9%
Free Cash Flow	-₹30 Cr	-₹3 Cr	-₹9 Cr	₹11 Cr	—

🟢 Revenue has grown at 19.0% a year over 3 years.

🟢 EBITDA has grown at 65.0% a year over 3 years.

🟢 EBITDA Margin has risen from 2.7% to 7.2% over 3 years (+4.5 pts).

🔴 PAT (Net Profit) has shrunk at 11.9% a year over 3 years.

🔴 EPS has shrunk at 11.9% a year over 3 years.

🔴 ROE has fallen from 10.5% to 6.3% over 3 years (-4.2 pts).

🔴 ROCE has fallen from 11.1% to 8.5% over 3 years (-2.6 pts).

🟢 Total Debt has shrunk at 57.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹30 Cr to ₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹302 Cr

Total Liabilities

₹92 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.3%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

10 Jul 2026

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 positive2 mixed3 general

Smartlink Holdings Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 05 Oct

Smartlink Holdings' (NSE:SMARTLINK) Promising Earnings May Rest On Soft Foundations

Simply Wall Street, 15 JulResults

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

Smartlink Holdings Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Smartlink Holdings Upper Circuit Streak: Day 2 Price and Data

Univest, 06 Oct

Smartlink Holdings Limited (NSE:SMARTLINK) Passed Our Checks, And It's About To Pay A ₹2.00 Dividend

Simply Wall Street, 06 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Smartlink Holdings Schedules Board Meeting on May 13, 2026 for FY26 Financial Results Approval

scanx.trade, 13 MayResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth · Risk

WeakBusiness Quality · Profitability

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

All 5 tripwires holding · see Key things to watch ↑