Takyon Networks Limited

Technology — Information Technology Services · BSE

₹16.65+₹0.49 (+3.03%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently 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 Takyon Networks Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Takyon Networks Limited provides networking and IT infrastructure solutions to government agencies and corporate enterprises in India.

IndustryInformation Technology Services

SectorTechnology

Employees154

Annual revenue₹71 Cr

How does it make money?

Turns over ₹71 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 154 employees supports ₹46.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹46.1 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?Little sign of one

Returns on capital of 10.4% 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 +12% while net margin moved +16% 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+12%

Margin effect+16%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

72/ 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

5.1x

1.3Y Median

3.7x

16 monthly readings · mean 4.7x · range 2.5x–8.2x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 36% above its 1.3y median of 3.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 69% below the peer median of 16.5x.

vs. its own history

Expensive

3.7x median over 16 months · +36%

vs. sector peers

Cheap

16.5x median of 4 peers · -69%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.7x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 62% over 3 years.
Very low debt
Debt/Equity of 0.12x 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 12.3% to 6.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.4% to 10.4% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹12 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 62% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 69% 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?

The price already assumes success
The stock trades 36% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 4.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 12.3% 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

1EBITDA margin holds above 7%✓ 9.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 4.0% CAGR
Latest reported year was -31.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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 · 3 neutral · 4 weak

Market Cap

₹24 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.1x

Cheap

Cheap against the generic band

P/B Ratio

0.41x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.29

Profitable

Profitable on a per-share basis

ROE

7.9%

Weak

Weak capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

-31.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-47.5%

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

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

4.4%

Average

Average asset productivity

Operating Margin

2.7%

Weak

Thin margins leave little room for error

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

4.57

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

16.9 / 17.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹63 Cr	₹108 Cr	₹103 Cr	₹71 Cr	+4.0%
EBITDA	₹5 Cr	₹11 Cr	₹14 Cr	₹6 Cr	+5.7%
EBITDA Margin	8.6%	9.8%	13.2%	9.1%	—
PAT (Net Profit)	₹3 Cr	₹5 Cr	₹7 Cr	₹4 Cr	+9.1%
EPS	₹1.96	₹3.65	₹6.61	—	—
ROE	12.3%	18.5%	19.8%	6.3%	—
ROCE	18.4%	31.1%	30.9%	10.4%	—
Total Debt	₹19 Cr	₹18 Cr	₹12 Cr	₹7 Cr	-27.9%
Free Cash Flow	-₹14 Cr	₹4 Cr	₹8 Cr	-₹12 Cr	—

🟢 Revenue has grown at 4.0% a year over 3 years.

🟢 EBITDA has grown at 5.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.1% over 3 years.

🟢 PAT (Net Profit) has grown at 9.1% a year over 3 years.

🔴 ROE has fallen from 12.3% to 6.3% over 3 years (-6.0 pts).

🔴 ROCE has fallen from 18.4% to 10.4% over 3 years (-8.0 pts).

🟢 Total Debt has shrunk at 27.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹70 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹12 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.8%

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 positive5 general

TAKYON NETWORKS LIMITED Share Price

Upstox, 05 May

HAL Order Win Boosts Takyon; Shares Gain 0.72%

HDFC Sky, 05 MayOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Takyon Networks adopts FY26 financials, re-appoints Paresh Goyal

scanx.trade, 01 Oct

Takyon Networks wins Rs 143.2 lakh order from Hindustan Aeronautics Limited

scanx.trade, 27 Jul

TECHNVISN Stock Price and Chart — NSE:TECHNVISN

TradingView, 22 Apr

Takyon Networks: Takyon Networks shares get listed at 1% premium!

Alice Blue, 06 Aug

Watch Items

Revenue growth is negative (-31.1%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth

WeakBusiness Quality · 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.

2 of 5 tripwires tripped — Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑