Cambridge Technology Enterprises Limited (CTE) AI Stock Analysis

• Market Cap: ₹667.45M
• Dividend Yield: N/A
• Average Volume (3M): 13.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: -4.97%
• EPS Growth: 32.59%
• Country: IN
• Employees: 286
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -2.65
• Shares Outstanding: 19,631,016
• 10 Day Avg. Volume: 2,539
• 30 Day Avg. Volume: 13,800
• PEG Ratio: <0.01
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 7.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹33.00 ▼(-17.40% Downside)

The overall stock score reflects significant financial and valuation challenges. The company's declining revenues, negative profitability, and increased financial risk are major concerns. Technical analysis offers a mixed view, with some potential for stabilization. However, the negative P/E ratio and lack of dividend yield weigh heavily on the stock's attractiveness.

Positive Factors

Positive operating cash flow (2025)

Positive operating cash flow in 2025 shows the core business can generate cash internally, reducing reliance on external financing. That improves ability to fund operations, service debt, and invest in delivery capabilities, supporting durability while profits recover.

Improving free cash flow growth

A slight improvement in free cash flow growth indicates the company is beginning to convert operations into discretionary cash. If sustained, this trend can enable reinvestment, deleveraging or buffer against downturns, strengthening long-term financial flexibility.

Stable equity ratio provides buffer

A relatively stable equity ratio offers a capital cushion that mitigates some risk from rising debt. This stability supports creditor confidence and gives management room to execute restructuring or strategic initiatives without immediate solvency pressure.

Negative Factors

Declining revenues

A meaningful revenue decline erodes scale, weakens pricing leverage and undermines ability to cover fixed costs. Persisting top-line contraction makes margin recovery and investment for product or market renewal harder, threatening long-term competitive position.

Negative profitability and margins

Negative gross, EBIT, EBITDA and net margins point to structural cost or pricing issues that prevent converting revenue into profit. Prolonged unprofitability restricts self-funding for growth, raises refinancing risk, and imperils long-term viability without a clear turnaround.

Rising leverage and falling ROE

An increased debt-to-equity ratio combined with declining ROE signals rising financial risk and deteriorating capital efficiency. Higher leverage increases interest burden and limits strategic flexibility, amplifying downside risk and making recovery more difficult over time.

Cambridge Technology Enterprises Limited Business Overview & Revenue Model

Company Description

Cambridge Technology Enterprises Limited, a business and technology services company, provides service oriented architecture-based enterprise transformation and integration solutions and services in India, the United States, Qatar, Malaysia and the Philippines. The company offers pre-built and pre-integrated artificial intelligence solutions and machine learning models, which enables businesses to build, deploy, configure solutions faster, enhance process automation, detect anomalies, and get data-driven insights; and designs, builds, and deploys robust applications that drives personalization, engagement, user experiences, and increases time-to-market. It also designs, manages, migrates, and monitors IT infrastructure; and offers cloud and IoT services. The company serves the midsize market enterprises and the midsize units of Global 2000 enterprises across a range of industries. Cambridge Technology Enterprises Limited was incorporated in 1999 and is based in Hyderabad, India.

How the Company Makes Money

CTE generates revenue through multiple streams, primarily focusing on service contracts for IT consulting and software development projects. The company typically charges clients on a project basis, which may include fixed-price contracts, time and materials contracts, or retainer agreements. Additionally, CTE earns revenue from ongoing support and maintenance services, which provide a steady income stream. Partnerships with technology vendors and platforms also play a significant role in its earnings, enabling CTE to offer integrated solutions that enhance its service portfolio. Furthermore, the company may collaborate with other firms for joint ventures or strategic alliances, which can lead to additional revenue opportunities.

Cambridge Technology Enterprises Limited Financial Statement Overview

Summary

The financial performance is weak, with declining revenues and profitability. The income statement shows negative gross and net profit margins, and the balance sheet indicates increased leverage with a higher debt-to-equity ratio. Cash flow management is volatile, despite some strengths in operating cash flow.

Income Statement

The income statement reflects a challenging financial period with declining revenues and profitability. The company experienced a significant drop in revenue from 2024 to 2025, alongside negative gross and net profit margins, indicating operational inefficiencies and cost pressures. The negative EBIT and EBITDA margins further highlight profitability issues. Historical data shows fluctuating revenue growth rates, with recent negative growth compounding concerns about future revenue stability.

Balance Sheet

The balance sheet shows a moderate financial position with concerns over leverage. The debt-to-equity ratio has increased, indicating higher financial risk. The equity ratio remains relatively stable, providing some balance. However, the declining return on equity suggests diminished returns for shareholders amid increased liabilities.

Cash Flow

Cash flow analysis presents a mixed picture. Despite a positive operating cash flow in 2025, the company faces challenges with consistent free cash flow generation. The free cash flow growth rate has improved slightly, but overall cash flow management remains volatile. The operating cash flow to net income ratio indicates a better conversion of income into cash, yet future sustainability is uncertain given historical fluctuations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.95B	1.99B	2.06B	1.82B	1.12B	1.09B
Gross Profit	124.16M	-19.58M	432.68M	354.56M	265.54M	190.28M
EBITDA	-136.68M	-215.74M	250.25M	217.14M	189.10M	177.27M
Net Income	-390.27M	-480.62M	55.79M	81.47M	97.96M	88.12M
Balance Sheet
Total Assets	0.00	1.96B	2.72B	1.77B	1.34B	1.15B
Cash, Cash Equivalents and Short-Term Investments	205.39M	23.84M	252.73M	33.95M	142.13M	237.89M
Total Debt	0.00	862.42M	1.20B	569.28M	356.78M	166.40M
Total Liabilities	-679.47M	1.28B	1.60B	774.77M	489.91M	398.48M
Stockholders Equity	679.47M	679.47M	1.12B	987.78M	853.86M	747.52M
Cash Flow
Free Cash Flow	0.00	96.60M	-253.69M	-305.92M	-193.78M	84.74M
Operating Cash Flow	0.00	432.09M	124.19M	-220.53M	64.08M	161.72M
Investing Cash Flow	0.00	-334.88M	-430.10M	-85.30M	-257.72M	-59.19M
Financing Cash Flow	0.00	-326.36M	524.69M	205.66M	184.36M	22.62M

Cambridge Technology Enterprises Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 39.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CTE, the sentiment is Negative. The current price of 39.95 is above the 20-day moving average (MA) of 38.93, below the 50-day MA of 42.46, and below the 200-day MA of 44.19, indicating a bearish trend. The MACD of -1.89 indicates Positive momentum. The RSI at 25.53 is Positive, neither overbought nor oversold. The STOCH value of 0.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CTE.

Cambridge Technology Enterprises Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HOVS	60 Neutral	₹775.85M	15.94	―	―	125.93%	61.50%
ADROITINFO	55 Neutral	₹536.90M	34.28	―	―	38.47%	-83.43%
CTE	45 Neutral	₹667.45M	-4.37	―	―	-4.97%	32.59%
XELPMOC	45 Neutral	₹2.02B	-26.13	―	―	-30.22%	25.16%
GSS	41 Neutral	₹406.97M	-14.46	―	―	-14.85%	-128.21%
VISESHINFO	37 Underperform	₹1.28B	-13.18	―	―	-18.82%	-176.60%

Cambridge Technology Enterprises Limited Corporate Events

Cambridge Technology Enterprises to Strike Off Dormant Subsidiary

Cambridge Technology Enterprises Limited has announced the decision to apply for the strike-off of its wholly-owned subsidiary, N2T1 AI Solutions Private Limited, which has not commenced any business operations since its incorporation. This move is not expected to impact the company’s revenue or financial position as the subsidiary is not considered material under SEBI regulations.