Xelpmoc Design and Tech Limited

Technology — Information Technology Services · NSE

₹86.00+₹0.22 (+0.26%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, with modest growth. 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 Xelpmoc Design and Tech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Xelpmoc Design and Tech Limited, a technology-driven company, provides consulting, software development, and digital transformation solutions to enterprises, startups, and government organizations in India and internationally.

IndustryInformation Technology Services

SectorTechnology

Employees51

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹-203 reaches shareholders as profit, with ₹-180 left at the operating level before interest, tax and depreciation. Each of its 51 employees supports ₹7.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹7.3 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 -9.2% 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.

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 -75% while net margin moved +87% 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-75%

Margin effect+87%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 36.7% a year

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

29/ 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.

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

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 82% over 3 years.
Return on equity is rising
ROE has improved from -23.9% to -10.1%.
Return on capital is rising
ROCE has improved from -21.6% to -9.2%.

🔴 What Needs Attention0

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

Red Flags

6 items require attention · 5 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -164.5x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹8 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 86.0 points, from -93.8% to -179.8%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -76.6x to -164.5x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 82% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -93.8% to -179.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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
5 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

1EBITDA margin holds above -182%✓ -179.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -164.5x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -9.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

1 good · 5 neutral · 5 weak

Market Cap

₹128 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

1.70x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-5.37

Loss-making

Negative earnings per share — the business is losing money

ROE

-10.1%

Weak

Weak capital efficiency

ROCE

-9.2%

Weak

Low return on total capital employed

Debt/Equity

0.92x

Moderate

Moderate leverage

Revenue Growth (YoY)

22.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

6.0%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-208.2%

Weak

Thin margins leave little room for error

Net Margin

-202.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

5.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.01

Market-like

Moves roughly in line with the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

84.6 / 81.4

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹6 Cr	₹4 Cr	₹4 Cr	-36.7%
EBITDA	-₹14 Cr	-₹9 Cr	-₹7 Cr	-₹7 Cr	—
EBITDA Margin	-93.8%	-137.4%	-176.0%	-179.8%	—
PAT (Net Profit)	-₹16 Cr	-₹14 Cr	-₹8 Cr	-₹8 Cr	—
EPS	₹-11.05	₹-9.54	₹-5.5	₹-5.15	—
ROE	-23.9%	-22.4%	-12.6%	-10.1%	—
ROCE	-21.6%	-18.9%	-11.3%	-9.2%	—
Total Debt	₹4 Cr	₹2 Cr	₹1 Cr	₹1 Cr	-44.0%
Free Cash Flow	-₹16 Cr	-₹11 Cr	-₹5 Cr	-₹7 Cr	—

🔴 Revenue has shrunk at 36.7% a year over 3 years.

🔴 EBITDA Margin has fallen from -93.8% to -179.8% over 3 years (-86.0 pts).

🟢 ROE has risen from -23.9% to -10.1% over 3 years (+13.7 pts).

🟢 ROCE has risen from -21.6% to -9.2% over 3 years (+12.3 pts).

🟢 Total Debt has shrunk at 44.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹86 Cr

Total Liabilities

₹11 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

59.4%

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

Xelpmoc Design and Tech (NSE:XELPMOC) Price Movement Clarification

Kalkine India, 06 Oct

Why Is Xelpmoc Design and Tech Share Price Falling: Key Reasons and Investor Analysis 2026

Univest, 07 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Xelpmoc Design And Tech Surges 17.77%: XELPMOC.NS Scales Toward ₹95 - Bull Pennant

https://www.siam.in/, 02 Oct

Promoter confirms no encumbrance of Xelpmoc Design and Tech shares

scanx.trade, 03 Jul

Momentum Stocks: Transport Corp, Xelpmoc Design, Infinium Pharma rally up to 8% on strong momentum

Moneycontrol.com, 25 Sept

Xelpmoc Design and Tech ESOP Grant of 1,45,000 Options

Kalkine India, 22 Sept

Watch Items

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

DalalBaazaar Thesis

MiddlingFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑