Unicommerce eSolutions Limited

Technology — Software - Application · NSE

₹82.16−₹1.73 (−2.06%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Unicommerce eSolutions Limited provides a suite of software-as-a-service products in India and internationally.

IndustrySoftware - Application

SectorTechnology

Employees254

Annual revenue₹204 Cr

How does it make money?

Turns over ₹204 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 254 employees supports ₹80.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin18.8%

Net margin10.0%

Revenue / employee₹80.4 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.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 14.2% 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.

ROCE14.2%

ROE10.6%

Peer median ROE32.0%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 17.5% and earnings to grow about 55.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+17.5%

Est. earnings growth+55.6%

Analysts1

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 +127% while net margin moved +39% 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+127%

Margin effect+39%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.93 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

54/ 100

Fair

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

44.9x

2Y Median

82.7x

28 monthly readings · mean 86.8x · range 46.2x–168.7x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 2y median of 82.7x. 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 171% above the peer median of 16.5x.

vs. its own history

Cheap

82.7x median over 28 months · -46%

vs. sector peers

Expensive

16.5x median of 4 peers · +171%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

44.9x

P/B

4.99x

EV/EBITDA

24.2x

PEG

0.96

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 10.5% to 18.8% over 3 years.
Cash generation is improving
Free cash flow is up 219% over 3 years.
Valuation below its historical average
At 44.9x the stock trades 46% below its own median of 82.7x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 4.91x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 10.5% to 18.8%. 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.
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?

Leverage amplifies any setback
Debt/Equity of 4.91x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 171% above the peer median. That premium needs a reason that persists, or it closes.
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 24% a year✓ 31.4% CAGR
Latest reported year was 14.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹45 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 14.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹923 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

44.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.99x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.83

Profitable

Profitable on a per-share basis

ROE

10.6%

Moderate

Moderate capital efficiency

ROCE

14.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.91x

High

High leverage

Revenue Growth (YoY)

14.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

14.7%

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

₹45 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹82.16

P/E (Forward)

27.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.5%

Average

Average margins

Net Margin

10.1%

Good

Strong bottom-line conversion

Current Ratio

1.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.93

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

83.0 / 84.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹90 Cr	₹104 Cr	₹135 Cr	₹204 Cr	+31.4%
EBITDA	₹9 Cr	₹20 Cr	₹31 Cr	₹38 Cr	+59.7%
EBITDA Margin	10.5%	19.5%	22.9%	18.8%	—
PAT (Net Profit)	₹6 Cr	₹13 Cr	₹18 Cr	₹20 Cr	+46.7%
EPS	₹0.64	₹1.3	₹1.58	₹1.78	+40.5%
ROE	12.5%	19.0%	25.2%	10.6%	—
ROCE	15.7%	22.8%	28.7%	14.2%	—
Total Debt	—	₹8 Cr	₹8 Cr	₹9 Cr	—
Free Cash Flow	₹14 Cr	₹6 Cr	₹21 Cr	₹45 Cr	+47.2%

🟢 Revenue has grown at 31.4% a year over 3 years.

🟢 EBITDA has grown at 59.7% a year over 3 years.

🟢 EBITDA Margin has risen from 10.5% to 18.8% over 3 years (+8.3 pts).

🟢 PAT (Net Profit) has grown at 46.7% a year over 3 years.

🟢 EPS has grown at 40.5% a year over 3 years.

🔴 ROE has fallen from 12.5% to 10.6% over 3 years (-1.9 pts).

🔴 ROCE has fallen from 15.7% to 14.2% over 3 years (-1.5 pts).

🟢 Free Cash Flow has grown at 47.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹271 Cr

Total Liabilities

₹78 Cr

Total Debt

₹9 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹47 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

16.2%

Insider Holding

47.8%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹128

+55.8% vs CMP

Target Range

₹128 – ₹128

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

5 mixed1 general

Unicommerce eSolutions to host analyst meet on Jun 29

scanx.trade, 15 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Unicommerce eSolutions (NSEI:UNIECOM) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Unicommerce Esolutions shares rally 15%, up 24% from 52-week low; check why

Business Standard, 11 JunPrice 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.

Unicommerce eSolutions Share Price Rise: Key Market View

Univest, 22 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.

Unicommerce eSolutions - Madhusudan Kela’s portfolio: 5 stocks rally up to 135%; 4 new Q4 bets revealed

The Economic Times, 02 MayResults

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

This smallcap stock rallies over 7% on partnering with Swiggy Networks; key details to know

Upstox, 24 Jun

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.

DalalBaazaar Thesis

🟡Business QualityAdequate12/20

🟡Financial HealthAdequate12.6/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong9.9/15

🟡ValuationFair8.3/15

🔴RiskHigh3.5/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 24% a year31.4% CAGR
✓EBITDA margin holds above 17%18.8%
✓Free cash flow remains positive₹45 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 11%14.2%