Suyog Telematics Limited

Communication Services — Telecom Services · NSE

₹616.95−₹16.25 (−2.57%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Suyog Telematics Limited provides passive telecommunication infrastructure services in India.

IndustryTelecom Services

SectorCommunication Services

Employees409

Annual revenue₹222 Cr

How does it make money?

Turns over ₹222 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹76 left at the operating level before interest, tax and depreciation. Each of its 409 employees supports ₹54.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹54.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. 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 12.9% 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.

Peer median ROE20.2%

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 +54% while net margin moved -12% 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+54%

Margin effect-12%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.35 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

85/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.1x

2Y Median

22.4x

28 monthly readings · mean 20.8x · range 11.7x–31.7x

Sector Median

21.7x

median of 2 sector peers

🟢Current valuation is approximately 46% below its 2y median of 22.4x. 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 44% below the peer median of 21.7x.

vs. its own history

Cheap

22.4x median over 28 months · -46%

vs. sector peers

Cheap

21.7x median of 2 peers · -44%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.4x

PEG

1.12

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 70.5% to 76.0% 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 19.8% to 12.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.9% to 12.9% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 197% over 3 years, from ₹125 Cr to ₹371 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹29 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 70.5% to 76.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 46% 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 44% 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?

Returns on shareholder capital are falling
ROE has dropped from 19.8% to 12.9%. 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.
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
2 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 12% a year✓ 15.6% CAGR
Latest reported year was 30.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 74%✓ 76.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹29 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 10%✓ 12.9%
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

4 good · 5 neutral · 2 weak

Market Cap

₹723 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.1x

Cheap

Cheap against the generic band

P/B Ratio

1.48x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹50.93

Profitable

Profitable on a per-share basis

ROE

12.9%

Moderate

Moderate capital efficiency

ROCE

12.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.76x

Moderate

Moderate leverage

Revenue Growth (YoY)

30.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-19.0%

Falling

Profits are shrinking

Dividend Yield

0.16%

Modest

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

Free Cash Flow

-₹29 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

34.9%

Good

Healthy core-business profitability

Net Margin

26.7%

Good

Strong bottom-line conversion

Current Ratio

1.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

656.4 / 715.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹144 Cr	₹167 Cr	₹193 Cr	₹222 Cr	+15.6%
EBITDA	₹101 Cr	₹124 Cr	₹119 Cr	₹169 Cr	+18.5%
EBITDA Margin	70.5%	74.7%	61.6%	76.0%	—
PAT (Net Profit)	₹46 Cr	₹63 Cr	₹41 Cr	₹63 Cr	+10.8%
EPS	₹44.17	₹59.83	₹31.61	₹52.4	+5.9%
ROE	19.8%	21.2%	10.1%	12.9%	—
ROCE	19.9%	21.4%	12.9%	12.9%	—
Total Debt	₹125 Cr	₹150 Cr	₹213 Cr	₹371 Cr	+43.8%
Free Cash Flow	-₹34 Cr	₹8 Cr	-₹60 Cr	-₹29 Cr	—

🟢 Revenue has grown at 15.6% a year over 3 years.

🟢 EBITDA has grown at 18.5% a year over 3 years.

🟢 EBITDA Margin has risen from 70.5% to 76.0% over 3 years (+5.5 pts).

🟢 PAT (Net Profit) has grown at 10.8% a year over 3 years.

🟢 EPS has grown at 5.9% a year over 3 years.

🔴 ROE has fallen from 19.8% to 12.9% over 3 years (-6.9 pts).

🔴 ROCE has fallen from 19.9% to 12.9% over 3 years (-6.9 pts).

🔴 Total Debt has grown at 43.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹943 Cr

Total Liabilities

₹453 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

₹66 Cr

Capex

-₹95 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

61.3%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

1 positive1 mixed1 negative3 general

Suyog Telematics (SUYOG.NS) Slides 3.72% to ₹664.25 as Focus Shifts to ₹631 Support - Earnings Beat Stocks

https://www.siam.in/, 05 OctResults

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

Suyog Telematics Share Price Outlook: Where It Could Be in 3 Years

Univest, 03 Aug

Suyog Telematics Ltd

Equitypandit, 26 Mar

Suyog Telematics Limited's (NSE:SUYOG) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?

Simply Wall Street, 10 Feb

Suyog Telematics FY26 net profit rises 55.5% to ₹63.07 crore

scanx.trade, 26 MayResults

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

Suyog Telematics Q1FY27 net profit falls 16.3% to ₹1,449.69 crore

scanx.trade, 12 AugResults

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

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Valuation

MiddlingFinancial Health · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑