Telogica Limited

Technology — Scientific & Technical Instruments · BSE

₹7.19−₹0.09 (−1.24%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Telogica Limited manufactures and trades in telecommunication products in India.

IndustryScientific & Technical Instruments

SectorTechnology

Employees81

Annual revenue₹32 Cr

How does it make money?

Turns over ₹32 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. Each of its 81 employees supports ₹40.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹40.0 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 5.5% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +629% while net margin moved -118% 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+629%

Margin effect-118%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.3% is weak

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

36/ 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

N/A

No P/E — the company is lossmaking

EV/EBITDA

23.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -57.1% to 6.8% over 3 years.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 102% over 3 years, from ₹3 Cr to ₹5 Cr.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹24 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 173% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -57.1% to 6.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 70% a year✓ 93.9% CAGR
Latest reported year was 362.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹24 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 5.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

3 good · 2 neutral · 6 weak

Market Cap

₹47 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.42x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.05

Loss-making

Negative earnings per share — the business is losing money

ROE

4.3%

Weak

Weak capital efficiency

ROCE

5.5%

Weak

Low return on total capital employed

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

362.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-16.1%

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

-₹24 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.1%

Average

Average margins

Net Margin

-1.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

8.1 / 8.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

8.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹18 Cr	₹19 Cr	₹32 Cr	+93.9%
EBITDA	-₹3 Cr	₹2 Cr	₹2 Cr	₹2 Cr	—
EBITDA Margin	-57.1%	12.1%	8.9%	6.8%	—
PAT (Net Profit)	-₹1 Cr	₹1 Cr	₹2 Cr	₹1 Cr	—
EPS	₹-0.46	₹0.35	₹0.37	₹0.22	—
ROE	—	—	12.8%	4.3%	—
ROCE	—	14.6%	5.2%	5.5%	—
Total Debt	₹3 Cr	₹3 Cr	₹2 Cr	₹5 Cr	+26.4%
Free Cash Flow	-₹4 Cr	₹1 Cr	-₹11 Cr	-₹24 Cr	—

🟢 Revenue has grown at 93.9% a year over 3 years.

🟢 EBITDA has turned positive, from -₹3 Cr to ₹2 Cr.

🟢 EBITDA Margin has risen from -57.1% to 6.8% over 3 years (+63.9 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.46 to ₹0.22.

🔴 ROE has fallen from 12.8% to 4.3% over 3 years (-8.5 pts).

🔴 ROCE has fallen from 14.6% to 5.5% over 3 years (-9.1 pts).

🔴 Total Debt has grown at 26.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹58 Cr

Total Liabilities

₹25 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹21 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.2%

Corporate Actions

Ex-Dividend Date

16 Sept 2011

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 mixed5 general

TELOGICA Q1 Results FY27: Revenue Rs 14 crore, Net Loss Rs 1 Crore on Standalone Basis

Univest, 14 AugResults

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

Telogica appoints Sudhakara Reddy Allam as Managing Director

scanx.trade, 26 May

TELOGICA LIMITED Share Price

Upstox, 24 Mar

Telogica (BSE:532975) - Stock Analysis

Simply Wall Street, 04 Nov

Telogica Limited Board Meeting Appoints Company Secretary and Secretarial Auditors

scanx.trade, 20 Mar

DIGILOGIC Stock Price and Chart — BSE:DIGILOGIC

TradingView, 28 Jan

Watch Items

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.
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

MiddlingValuation

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

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑