Datamatics Global Services Limited (DATAMATICS) AI Stock Analysis

• Market Cap: ₹45.53B
• Dividend Yield: 0.58%
• Average Volume (3M): 13.42K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 1.46
• Revenue Growth: 18.81%
• EPS Growth: 29.35%
• Country: IN
• Employees: 12,311
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 6.16
• Shares Outstanding: 59,106,388
• 10 Day Avg. Volume: 12,368
• 30 Day Avg. Volume: 13,416
• PEG Ratio: 5.53
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 2.17
• P/FCF Ratio: 19.94
• 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): 42.2
• Revenue Forecast (FY): ₹20.02B

• Rating: 72 Outperform
• Price Target: ₹855.00 ▲(7.20% Upside)
• Action: Upgraded Date: 10/24/25
• Date: Action: Upgraded 10/24/25

Datamatics Global Services scores well due to its strong financial performance, characterized by high profitability and a solid balance sheet. Technical analysis indicates neutral momentum, while valuation metrics suggest moderate pricing. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Robust revenue growth and healthy margins

Datamatics reports meaningful top-line expansion with double-digit revenue growth alongside strong gross and net margins. This combination indicates scalable service delivery and pricing power in its IT/BPM offerings, supporting sustainable profitability and reinvestment over the medium term.

Conservative leverage and strong equity base

Very low leverage and a high equity ratio provide financial flexibility and lower bankruptcy risk during downturns. A 15% ROE shows effective use of equity capital. Together, these metrics underpin durable capacity for strategic investments and stable operations over coming quarters.

Solid cash generation and improving FCF

Consistent free cash flow growth and strong operating-cash-to-income conversion indicate the business reliably converts profits into cash. For a services firm, this supports funding for technology investments, working capital needs, and reduces dependency on external financing in the medium term.

Negative Factors

Reduction in cash reserves

The decline in cash reserves weakens short-term liquidity buffers despite low leverage. If cash levels continue to fall, the company may face constrained flexibility for opportunistic investments or absorb shocks without raising external capital, increasing medium-term financial risk.

EPS contraction

Negative EPS growth despite revenue gains signals margin pressure, higher costs, or one-off items affecting earnings quality. Continued EPS contraction would reduce retained earnings and could limit ability to fund growth initiatives or return capital, impacting long-term shareholder value.

Revenue sensitivity to contract mix and renewals

Revenue predictability depends on renewing outsourcing contracts and cross-selling automation into BPM accounts. A shift toward shorter projects or weaker renewals increases revenue volatility and pressures utilization, making multi-quarter planning and margin maintenance more challenging.

Datamatics Global Services Limited Business Overview & Revenue Model

Company Description

Datamatics Global Services Limited provides information technology (IT), business process management, consulting, and engineering services in India, the United States, Europe, and internationally. The company operates through two segments, IT Services and Business Process Management. It offers TruBot, a digital workforce product that enables unattended and attended automation for a range of tasks and processes; TruCap+, an intelligent document processing solution; iPM, an intelligent process manager and a web-based workflow system; and True Test, a robotic test automation solution. The company also provides Trade Finance, a business accelerator solution that automates trade lifecycle; TruFare, an automated fare collection system for rapid transit systems; TruBI, a business intelligence and data visualization tool; and TrueAI, an artificial intelligence and cognitive sciences platform. It serves banking and finance, media and publishing, healthcare, transportation, insurance, manufacturing and logistics, travel and hospitality, retail and e-commerce, market research, education technology, and international organizations. The company was formerly known as Datamatics Technologies Limited and changed its name to Datamatics Global Services Limited in January 2009. The company was founded in 1975 and is based in Mumbai, India. Datamatics Global Services Limited is a subsidiary of Delta Infosolutions Private Limited.

How the Company Makes Money

DATAMATICS generates revenue primarily through its diverse service offerings. Key revenue streams include IT services, which encompass software development, application management, and IT consulting; business process outsourcing (BPO) services, which provide companies with outsourcing solutions for their operational tasks; and data management services that include data entry, data processing, and data analytics. The company also earns revenue from licensing its proprietary technology and software solutions. Significant partnerships with various multinational corporations and enterprises enhance its market reach and customer base, contributing positively to its earnings. Additionally, DATAMATICS benefits from long-term contracts with clients, which provide stable and recurring revenue.

Datamatics Global Services Limited Financial Statement Overview

Summary

Datamatics Global Services demonstrates strong financial performance with robust revenue growth, high profitability margins, and effective return on equity. The balance sheet is solid with low leverage, though a decrease in cash reserves suggests a need for careful liquidity management.

Income Statement

Datamatics Global Services has demonstrated strong revenue growth, with a notable increase of 11.2% in the latest year. The company also maintains a robust gross profit margin of 34.9% and a healthy net profit margin of 11.9%. EBIT and EBITDA margins have shown improvement, reflecting operational efficiency. However, the slight decline in EBITDA margin from the previous year suggests a need to monitor cost controls closely.

Balance Sheet

The balance sheet of Datamatics Global Services is solid with a low debt-to-equity ratio of 0.14, indicating conservative leverage practices. Return on equity stands at 15%, showcasing effective utilization of equity to generate profits. The equity ratio of 66.3% highlights strong financial stability with a significant portion of assets funded by equity. However, the reduction in cash reserves over the years could pose a potential risk if liquidity needs arise.

Cash Flow

Datamatics Global Services shows a positive trend in free cash flow growth, with an increase of 12%. The operating cash flow to net income ratio is favorable at 1.09, indicating effective cash conversion from net income. The free cash flow to net income ratio of 0.92 suggests strong cash generation relative to earnings, though there is room for improvement. The company's ability to maintain healthy cash flows supports its operational resilience.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.97B	17.23B	15.50B	14.59B	12.01B	11.49B
Gross Profit	6.06B	3.83B	5.50B	5.59B	4.56B	3.97B
EBITDA	3.18B	2.30B	2.91B	2.83B	2.30B	1.53B
Net Income	2.12B	2.05B	1.98B	1.89B	1.57B	797.46M
Balance Sheet
Total Assets	0.00	20.56B	14.63B	12.81B	11.10B	9.08B
Cash, Cash Equivalents and Short-Term Investments	3.65B	3.65B	4.58B	3.91B	4.26B	3.27B
Total Debt	0.00	1.90B	173.80M	212.60M	630.21M	200.68M
Total Liabilities	-13.56B	7.00B	2.43B	2.41B	2.56B	1.93B
Stockholders Equity	13.56B	13.65B	12.29B	10.48B	8.57B	7.16B
Cash Flow
Free Cash Flow	0.00	1.88B	1.68B	908.20M	1.58B	853.57M
Operating Cash Flow	0.00	2.24B	1.84B	1.31B	1.82B	1.02B
Investing Cash Flow	0.00	-2.49B	-1.79B	-989.60M	-1.34B	-792.95M
Financing Cash Flow	0.00	1.19B	-384.60M	-664.40M	207.00M	-989.83M

Datamatics Global Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 797.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DATAMATICS, the sentiment is Negative. The current price of 797.55 is above the 20-day moving average (MA) of 770.39, above the 50-day MA of 759.18, and below the 200-day MA of 803.36, indicating a neutral trend. The MACD of 11.18 indicates Negative momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 35.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DATAMATICS.

Datamatics Global Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DATAMATICS	72 Outperform	₹45.53B	23.36	―	0.58%	18.81%	29.35%
EXPLEOSOL	71 Outperform	₹11.64B	10.94	―	4.95%	3.80%	-4.66%
SAKSOFT	68 Neutral	₹18.78B	14.18	―	0.42%	21.17%	27.66%
CIGNITITEC	66 Neutral	₹32.43B	10.70	―	―	13.58%	104.94%
SASKEN	64 Neutral	₹17.51B	45.95	―	1.83%	77.13%	-39.91%
RSYSTEMS	62 Neutral	₹34.30B	18.40	―	3.06%	8.36%	36.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Datamatics Global Services Limited Corporate Events

Datamatics CEO Rahul Kanodia Receives Honorary Doctorate from Amity University

Rahul Kanodia, Vice Chairman & CEO of Datamatics, has been awarded an Honorary Doctorate by Amity University, Kolkata, in recognition of his significant contributions to the global technology landscape and digital transformation. This accolade highlights his visionary leadership and the impact of Datamatics on the digital and AI ecosystem, further strengthening the company’s resolve to deliver meaningful innovations and maintain its industry positioning.