Spectrum Talent Management Limited

Sector n/a · NSE

₹109.80+₹8.30 (+8.18%)

DalalBaazaar Score

43 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Low

Driven by 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. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:50 pm

Understanding the Business

The 60-second version of Spectrum Talent Management 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 ₹1,438 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 7.9% 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.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +90% while net margin moved -77% 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+90%

Margin effect-77%

DalalBaazaar Score

43/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

35/ 100

Expensive

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

15.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 256% over 3 years.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 49.8% to 7.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 40.1% to 7.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 709% over 3 years, from ₹4 Cr to ₹30 Cr.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 10.2x to 4.7x.
🟡Profit is decliningFinancial
Net profit is down 56% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹25 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?

Margins are being competed away
EBITDA margin has fallen from 3.3% to 1.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 49.8% to 7.1%. 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 18% a year✓ 23.9% CAGR
Latest reported year was 14.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹25 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 7.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 5 neutral · 2 weak

Market Cap

₹254 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

7.1%

Weak

Weak capital efficiency

ROCE

7.9%

Weak

Low return on total capital employed

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

14.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

69.4%

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

₹25 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

9.0%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

0.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.37

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

59.1 / 60.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹757 Cr	₹1,002 Cr	₹1,256 Cr	₹1,438 Cr	+23.9%
EBITDA	₹25 Cr	₹12 Cr	₹11 Cr	₹18 Cr	-10.8%
EBITDA Margin	3.3%	1.2%	0.9%	1.2%	—
PAT (Net Profit)	₹28 Cr	₹12 Cr	₹7 Cr	₹12 Cr	-23.9%
EPS	₹12.04	₹5.3	₹2.94	—	—
ROE	49.8%	7.9%	4.5%	7.1%	—
ROCE	40.1%	7.0%	5.6%	7.9%	—
Total Debt	₹4 Cr	₹1 Cr	₹35 Cr	₹30 Cr	+100.8%
Free Cash Flow	₹7 Cr	-₹10 Cr	-₹72 Cr	₹25 Cr	+52.7%

🟢 Revenue has grown at 23.9% a year over 3 years.

🔴 EBITDA has shrunk at 10.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 3.3% to 1.2% over 3 years (-2.1 pts).

🔴 PAT (Net Profit) has shrunk at 23.9% a year over 3 years.

🔴 ROE has fallen from 49.8% to 7.1% over 3 years (-42.7 pts).

🔴 ROCE has fallen from 40.1% to 7.9% over 3 years (-32.2 pts).

🔴 Total Debt has grown at 100.8% a year over 3 years.

🟢 Free Cash Flow has grown at 52.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹281 Cr

Total Liabilities

₹108 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹68 Cr

Capex

-₹43 Cr

Recent News

1 positive3 mixed2 general

Spectrum Talent Management Share Price Declines; Key Metrics

Univest, 30 SeptPrice 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.

Spectrum Talent Management Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Spectrum Talent Management Ltd. (SPECTSTM-SM) Share Price rises 8.66% today to Rs 61.45

Univest, 25 SeptPrice 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.

Spectrum Talent Management (NSE:SPECTSTM) Has A Pretty Healthy Balance Sheet

Simply Wall Street, 06 Jan

Spectrum Talent Management FY26 net profit rises 77% to ₹121.90 million

scanx.trade, 22 JunResults

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

Spectrum Talent Management Share Price falls 10.11% today

Univest, 28 SeptPrice 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.

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.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

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.

1 of 5 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑