ftInvstr
ONWARDTEC · Technology ₹389.0 +1.51% Mkt Cap ₹877 Cr undervalued

ONWARDTEC

Technology Information Technology Services
₹389.0
+1.51% today · 30d +26.71%
as of 2026-11-09
Price · Daily Candles
“FIIs and DIIs increase stakes as Onward Technologies reports strong annual profit growth, yet quarterly net profit dips.”
Onward Technologies posted a 63.69% YoY increase in annual net profit to ₹44 Cr for FY26, despite a quarterly net profit decline of 8.26% to ₹10 Cr in Q4 FY26. The stock's current PE of 13.92 is below the sector average, with a ROCE of 23.0%, reflecting a 'CHEAP' valuation score of 75.
BULL CASE
+Annual net profit surged by 63.69% YoY to ₹44 Cr in FY26, showcasing significant bottom-line improvement.
+Promoters maintain a substantial 39.07% stake, coupled with increased FII holdings (+0.43%) and DII holdings (+0.63%) QoQ.
+The company's PE of 13.92 is lower than several peers such as TCS (16.74) and Infosys (16.05), suggesting a potential undervaluation.
+Annual revenue grew 10.69% YoY to ₹544 Cr in FY26, alongside a 3-year revenue CAGR of 6.81% and a 5-year CAGR of 17.74%.
BEAR CASE
−Quarterly net profit decreased by 8.26% YoY to ₹10 Cr in Q4 FY26, indicating recent pressure on profitability.
−The stock is trading 29.7% off its 52-week high of ₹385.0.
−Operating profit margin declined by 0.33 percentage points YoY in Q4 FY26, falling to 12.39%.
−ML predictions show weak ranks for free cash flow (FCF), with the 1-year recent 2-year FCF rank at 0.243 and 1-year stable 7-year FCF rank at 0.084.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-09-30
REVENUE
₹170 Cr
+22.46% YoY
NET PROFIT
₹17 Cr
+40.5% YoY
OPM
16.11%
+1.12pp YoY
EPS
₹7.65
PE 13.92
Intrinsic value · DCF ₹586.08 · Margin of safety +50.7% (undervalued) · FCF yield 5.36%
◇ Sector Position
Onward Technologies trades at a PE of 13.92 with a ROCE of 23.0%, making it relatively cheaper than sector leaders like TCS (PE 16.74, ROCE 60.1%) but with lower returns on capital.
PEERPEROCE %
ONWARDTEC13.9223.0
TCS16.7460.1
INFY16.0544.44
WIPRO16.1922.08
+ 2 more peers — sign in to view
ML Forward Growth Predictions 🔒

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71
SCORE / 100
Overall
6-axis composite of the sections below.
Performance STRONG 90
Valuation CHEAP 75
Growth STRONG 74
Profitability HIGH 85
Technicals STRONG 70
Risk ELEVATED 30
Key Stats
TTM PE
13.92
P/B
2.4
52W HIGH
₹495.65
OFF HIGH
-21.52%
DIV YIELD
1.85%
MKT CAP
₹877 Cr
◉ Active Signals
MACDNeutral-5.8541
RSI(14)Neutral56.27
⧉ Strategy Fit 🔒

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