Datamatics Global Services Limited (DATAMATICS) AI Stock Analysis

• Market Cap: ₹40.23B
• Dividend Yield: 0.58%
• Average Volume (3M): 13.42K
• Price to Earnings (P/E): 32.9
• Beta (1Y): 1.33
• 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: ₹755.00 ▼(-5.34% Downside)
• 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

Revenue & Margins

Double-digit top-line growth alongside healthy gross (34.9%) and net (11.9%) margins indicates durable demand and effective pricing in its BPM/automation portfolio. Sustained revenue expansion with solid margins supports reinvestment, platform development, and long-term contract economics.

Conservative Capital Structure

A low debt-to-equity ratio (0.14) and a 66.3% equity ratio provide financial flexibility and resilience to shocks, while a 15% ROE shows effective capital deployment. This conservative structure supports strategic investments in automation and platform capabilities without overreliance on external funding.

Strong Cash Generation

Free cash flow growth of 12% and an operating cash flow to net income ratio above 1.0 signal reliable cash conversion. Consistent cash generation reduces refinancing risk, funds organic growth and R&D, and provides capacity for targeted M&A to scale automation and platform-led services.

Negative Factors

Falling Cash Reserves

A noted reduction in cash reserves, despite positive cash flow trends, weakens liquidity buffers. Lower cash holdings limit the company’s ability to absorb cyclical downturns, fund unexpected working capital needs, or pursue opportunistic acquisitions without tapping external financing.

Negative EPS Trend

Negative EPS growth (~-8.5%) despite revenue gains suggests per-share profitability pressures. If driven by rising costs, one-offs, or dilution, this trend can erode shareholder returns and indicates management must improve margin conversion or capital allocation to restore earnings per share growth.

Margin Pressure

A reported slight decline in EBITDA margin points to emerging cost pressure or competitive pricing dynamics. Continued margin compression would reduce operating leverage, limit free cash flow expansion, and constrain the firm’s ability to invest in technology and talent over the medium term.

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 primarily makes money by delivering contracted services to enterprise customers under recurring service arrangements and project-based engagements. Key revenue streams typically include: (1) Business Process Management (BPM) / IT-enabled services: fees earned for running and optimizing client business processes (e.g., back-office operations, customer support/contact center, finance and accounting and other process outsourcing), often priced per FTE, per transaction, per outcome/SLAs, or as a managed service. (2) Digital technologies and automation: revenue from designing, implementing, and operating automation and digital transformation programs (including RPA/AI-led workflow and analytics), earned via consulting/implementation project fees and, where applicable, ongoing support/maintenance. (3) Enterprise technology services: income from application development and maintenance, integration, testing, and IT support services, generally billed on time-and-materials, fixed-price projects, or managed service contracts. (4) Content/document and data-driven solutions: fees for document processing, capture, and related platform-led services, commonly transaction/volume based. The company’s earnings are influenced by the mix of long-term outsourcing contracts vs. shorter-duration projects, utilization and delivery efficiency, renewals/expansions with existing clients, and the ability to cross-sell automation and platform-led offerings into BPM accounts. Specific material partnerships or customer concentration details: null.

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	18.80B	17.23B	15.50B	14.59B	12.01B	11.49B
Gross Profit	6.50B	3.83B	5.50B	5.59B	4.56B	3.97B
EBITDA	3.60B	2.30B	2.91B	2.83B	2.30B	1.53B
Net Income	2.33B	2.05B	1.98B	1.89B	1.57B	797.46M
Balance Sheet
Total Assets	21.54B	20.56B	14.63B	12.81B	11.10B	9.08B
Cash, Cash Equivalents and Short-Term Investments	4.56B	3.65B	4.58B	3.91B	4.26B	3.27B
Total Debt	1.86B	1.90B	173.80M	212.60M	630.21M	200.68M
Total Liabilities	7.08B	7.00B	2.43B	2.41B	2.56B	1.93B
Stockholders Equity	14.54B	13.65B	12.29B	10.48B	8.57B	7.16B
Cash Flow
Free Cash Flow	1.08B	1.88B	1.68B	908.20M	1.58B	853.57M
Operating Cash Flow	1.18B	2.24B	1.84B	1.31B	1.82B	1.02B
Investing Cash Flow	-1.70B	-2.49B	-1.79B	-989.60M	-1.34B	-792.95M
Financing Cash Flow	-372.80M	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: 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:DATAMATICS, the sentiment is Negative. The current price of 797.55 is above the 20-day moving average (MA) of 735.49, above the 50-day MA of 731.81, and below the 200-day MA of 809.13, indicating a bearish trend. The MACD of -16.98 indicates Positive momentum. The RSI at 41.95 is Neutral, neither overbought nor oversold. The STOCH value of 40.40 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	₹40.23B	32.89	―	0.58%	18.81%	29.35%
EXPLEOSOL	71 Outperform	₹11.17B	23.39	―	4.95%	3.80%	-4.66%
SAKSOFT	68 Neutral	₹15.57B	21.87	―	0.42%	21.17%	27.66%
CIGNITITEC	66 Neutral	₹29.53B	14.03	―	―	13.58%	104.94%
RSYSTEMS	62 Neutral	₹31.33B	32.84	―	3.06%	8.36%	36.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SASKEN	54 Neutral	₹16.68B	74.37	―	1.83%	77.13%	-39.91%