Cambridge Technology Enterprises Limited (CTE) AI Stock Analysis

• Market Cap: ₹493.33M
• Dividend Yield: N/A
• Average Volume (3M): 13.80K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.42
• Revenue Growth: -4.97%
• EPS Growth: 32.59%
• Country: IN
• Employees: 286
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.64
• 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: 42 Neutral
• Price Target: ₹23.50 ▼(-41.18% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is primarily weighed down by weak financial performance (notably declining revenue and negative profitability) and a clear bearish technical setup with price below major moving averages and negative MACD. Valuation provides limited support because the negative P/E reflects losses and there is no dividend yield data.

Positive Factors

Positive operating cash flow

The company delivered positive operating cash flow in 2025 with improved conversion of net income to cash. Durable cash generation from operations supports day-to-day working capital, reduces near-term refinancing need and provides a foundation for executing a multi-quarter turnaround or targeted investments.

Slight free cash flow improvement

A modest improvement in free cash flow growth suggests early stabilization of post-loss cash dynamics. Sustained FCF improvement over several quarters would materially reduce dependence on external funding, allowing management to prioritise organic growth or deleveraging over the medium term.

Stable equity ratio

A relatively stable equity ratio provides a capital cushion as leverage rises, preserving some lender and investor confidence. That structural balance sheet element gives management optionality to access credit or raise capital without immediately destabilising solvency, aiding durability over months.

Negative Factors

Declining revenue and negative margins

Revenue decline coupled with negative gross and operating margins indicates persistent demand or pricing pressure and operational inefficiency. Over several quarters this erodes internal funding for R&D, sales and margin improvement initiatives, making sustainable recovery and competitive positioning more difficult.

Rising leverage and lower ROE

An increasing debt burden alongside falling ROE raises financial fixed-costs and refinancing vulnerability. Structurally higher leverage reduces strategic flexibility, increases interest exposure, and can crowd out investment, making multi-quarter recovery and growth plans harder to execute without capital actions.

Volatile free cash flow generation

Inconsistent free cash flow undermines the company's ability to fund capex, pay down debt, or invest in growth reliably. For a business already loss-making, FCF volatility increases reliance on external financing and raises the risk that strategic initiatives cannot be sustained across multiple quarters.

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.

Cambridge Technology Enterprises Limited Financial Statement Overview

Summary

Weak profitability and revenue trend drive the score down (income statement score 30: declining revenue, negative gross/net/EBIT/EBITDA margins). Balance sheet is only moderate (score 45) with rising leverage and lower ROE. Cash flow is mixed (score 50) with positive operating cash flow but volatile free cash flow generation.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.96B	1.99B	2.06B	1.82B	1.12B	1.09B
Gross Profit	261.19M	-19.58M	432.68M	354.56M	265.54M	190.28M
EBITDA	114.39M	-215.74M	250.25M	217.14M	189.10M	177.27M
Net Income	-152.82M	-480.62M	55.79M	81.47M	97.96M	88.12M
Balance Sheet
Total Assets	1.80B	1.96B	2.72B	1.77B	1.34B	1.15B
Cash, Cash Equivalents and Short-Term Investments	128.08M	23.84M	252.73M	33.95M	142.13M	237.89M
Total Debt	797.55M	862.42M	1.20B	569.28M	356.78M	166.40M
Total Liabilities	1.13B	1.28B	1.60B	774.77M	489.91M	398.48M
Stockholders Equity	677.88M	679.47M	1.12B	987.78M	853.86M	747.52M
Cash Flow
Free Cash Flow	215.79M	96.60M	-253.69M	-305.92M	-193.78M	84.74M
Operating Cash Flow	215.99M	432.09M	124.19M	-220.53M	64.08M	161.72M
Investing Cash Flow	-199.00K	-334.88M	-430.10M	-85.30M	-257.72M	-59.19M
Financing Cash Flow	-192.99M	-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: Neutral
• STOCH: Neutral

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 27.87, above the 50-day MA of 32.57, and below the 200-day MA of 41.73, indicating a bearish trend. The MACD of -2.59 indicates Positive momentum. The RSI at 32.20 is Neutral, neither overbought nor oversold. The STOCH value of 26.79 is Neutral, 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%
ADROITINFO	55 Neutral	₹508.18M	9.19	―	―	38.47%	-83.43%
GSS	44 Neutral	₹290.33M	50.36	―	―	-14.85%	-128.21%
CTE	42 Neutral	₹493.33M	15.47	―	―	-4.97%	32.59%
XELPMOC	42 Neutral	₹1.43B	-23.81	―	―	-30.22%	25.16%
VISESHINFO	37 Underperform	₹1.28B	-41.25	―	―	-18.82%	-176.60%

Cambridge Technology Enterprises Limited Corporate Events

Cambridge Technology Enterprises Shifts Quarterly Result Disclosures to QR Code Access

Cambridge Technology Enterprises Limited has notified the stock exchanges that it has published a Quick Response (QR) code in leading English and regional newspapers to provide stakeholders with digital access to its unaudited consolidated and standalone financial results and the limited review report for the quarter and nine months ended 31 December 2025. By opting to share its results via QR code and hosting the related newspaper advertisement on its investor relations website, the company is moving away from printing extracts of the results, streamlining regulatory disclosure while improving accessibility and convenience for investors and other market participants.