Wherrelz IT Solutions Limited

Technology — Information Technology Services · BSE

₹135.00₹0.00 (0.00%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Wherrelz IT Solutions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Wherrelz IT Solutions Limited provides business process automation solutions in India. It operates through Software Development, Digital Marketing, and OTT platform segments.

IndustryInformation Technology Services

SectorTechnology

Annual revenue₹20 Cr

How does it make money?

Turns over ₹20 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.

EBITDA margin1.2%

Net margin1.1%

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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +3255% while net margin moved -113% 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+3255%

Margin effect-113%

DalalBaazaar Score

27/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

29/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

23.5x

2Y Median

87.7x

28 monthly readings · mean 80.5x · range 54.0x–97.2x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 73% below its 2y median of 87.7x. 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 42% above the peer median of 16.5x.

vs. its own history

Cheap

87.7x median over 28 months · -73%

vs. sector peers

Expensive

16.5x median of 4 peers · +42%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

P/E (Trailing)

23.5x

P/B

—

EV/EBITDA

222.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Valuation below its historical average
At 23.5x the stock trades 73% below its own median of 87.7x.

🔴 What Needs Attention3

Receivables growing faster than sales
Receivables are up 8515% against revenue growth of 3255% — customers are taking longer to pay.
Negative shareholders' equity
Liabilities exceed assets — this is a solvency question that sits above every other consideration here.
Short-term liquidity is tight
Current ratio of 0.79 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Receivables growing faster than salesFinancial
Receivables up 8515% against revenue up 3255% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.79 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 73% 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.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 200.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 8515% against revenue up 3255%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 42% above the peer median. That premium needs a reason that persists, or it closes.
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.

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

1Revenue growth stays above 167% a year✓ 222.5% CAGR
Latest reported year was 83.3%. 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.
3Debt / EBITDA falls below 3x✗ 200.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
5Valuation vs its own median of 87.7x✓ 23.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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

₹5 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.5x

Fair

Fairly valued against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹5.74

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

83.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

102.5%

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

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹135

ROA

0.3%

Weak

Assets generate little profit

Operating Margin

123.5%

Good

Healthy core-business profitability

Net Margin

1.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.79

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

139.1 / 143.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹9 Cr	₹11 Cr	₹20 Cr	+222.5%
EBITDA	₹0 Cr	₹0 Cr	-₹9 Cr	₹0 Cr	+447.7%
EBITDA Margin	0.2%	1.5%	-83.3%	1.2%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	-₹9 Cr	₹0 Cr	—
EPS	₹-1.22	₹2.5	₹-229.54	—	—
ROE	-3.8%	6.9%	—	—	—
ROCE	-3.2%	6.5%	—	—	—
Total Debt	—	₹38 Cr	₹52 Cr	₹47 Cr	—
Free Cash Flow	-₹0 Cr	-₹39 Cr	-₹14 Cr	₹5 Cr	—

🟢 Revenue has grown at 222.5% a year over 3 years.

🟢 EBITDA has grown at 447.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.2% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹46 Cr

Total Liabilities

₹53 Cr

Total Debt

₹47 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.2%

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

3 mixed3 general

Compare with

Equitymaster, 17 Oct

Wherrelz IT Solutions submits voting results for 12th AGM

scanx.trade, 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.

Wherrelz IT Solutions Q4FY26 Results: Net profit turns positive to ₹23 lakh

scanx.trade, 08 SeptResults

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

Q4 Results Today: Jio Financial Services, Aditya Birla Money, Mastek Among 15 Firms To Share Earnings On April 17

NDTV Profit, 17 AprResults

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

Siddheshwar Advisory raises Wherrelz IT stake to 23.21% in off-market deal

scanx.trade, 07 Sept

Sword-Edge Commercials (BSE:512359) - Stock Analysis

Simply Wall Street, 04 Sept

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.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
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

🔴Business QualityWeak6/20

🔴Financial HealthStretched1/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak1.5/15

🔴ValuationDemanding4.5/15

🔴RiskHigh0.5/10

Avoid until solvency is resolved

Wherrelz IT Solutions Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 167% a year222.5% CAGR
✓EBITDA margin holds above -1%1.2%
✗Debt / EBITDA falls below 3x200.6x
✓Free cash flow remains positive₹5 Cr
✓Valuation vs its own median of 87.7x23.5x today