Innovana Thinklabs Ltd. (INNOVANA) AI Stock Analysis

• Market Cap: ₹7.57B
• Dividend Yield: N/A
• Average Volume (3M): 5.31K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.58
• Revenue Growth: 25.98%
• EPS Growth: 18.29%
• Country: IN
• Employees: 110
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 6.19
• Shares Outstanding: 20,660,000
• 10 Day Avg. Volume: 11,307
• 30 Day Avg. Volume: 5,312
• PEG Ratio: 1.85
• Price to Book (P/B): 3.32
• Price to Sales (P/S): 6.60
• P/FCF Ratio: 35.82
• 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: 68 Neutral
• Price Target: ₹373.00 ▼(-9.89% Downside)

Innovana Thinklabs Ltd. scores well on financial performance due to strong revenue growth and profitability, which is the most significant factor. However, technical analysis indicates bearish momentum, and valuation is moderate with no dividend yield. These factors collectively result in a balanced overall stock score.

Positive Factors

Sustained revenue growth

Multi-year top-line expansion (small dip then strong prior growth) indicates the company can win projects and scale services. That pattern supports durable revenue potential from contracts, partnerships and product monetization, aiding planning and reinvestment over months.

Very high profitability margins

Elevated gross and operating margins reflect a scalable software/services model and disciplined cost control. High margins provide durable capacity to fund R&D, absorb client concentration shocks, and maintain returns even if top-line growth moderates over the next several months.

Solid balance sheet and capital efficiency

Low leverage and a high equity ratio give the company financial flexibility to fund organic investment or absorb volatility. Strong ROE shows effective use of capital, supporting sustainable investment in products and services without heavy reliance on external financing.

Negative Factors

Rising total debt warrants monitoring

Although current leverage is low, the trend of rising total debt can erode balance sheet strength if it continues. Increased debt service would reduce cash available for R&D and working capital, constraining strategic flexibility across the next several quarters.

Suboptimal cash conversion

Earnings do not yet fully convert into free cash flow, which limits internal funding for growth or payouts. Even with a strong FCF turnaround, a FCF/net income under 0.5 suggests working capital or capex dynamics may constrain cash available for strategic investments over coming months.

Revenue growth volatility

A large swing between high prior-year growth and muted latest-year growth implies revenue volatility, possibly from project timing or client concentration. That unpredictability complicates capacity planning and may pressure margins or investment pacing in the medium term.

Innovana Thinklabs Ltd. Business Overview & Revenue Model

Company Description

Innovana Thinklabs Ltd. (INNOVANA) is a technology-focused company that specializes in developing innovative software solutions and digital services. Operating primarily in the IT and software development sector, Innovana offers a range of products including mobile applications, web development services, and custom software solutions tailored to meet the diverse needs of businesses across various industries. The company also emphasizes research and development to create cutting-edge technologies that enhance user experience and operational efficiency.

How the Company Makes Money

Innovana Thinklabs Ltd. generates revenue through multiple channels, primarily by offering software development services and digital solutions to businesses. The company charges clients for bespoke software projects, maintenance, and support services, creating a steady stream of income. Additionally, Innovana has established partnerships with various businesses and organizations, allowing them to collaborate on larger projects and share resources, which can lead to additional revenue opportunities. The company may also monetize its proprietary software products through licensing fees or subscription models, further enhancing its earnings potential.

Innovana Thinklabs Ltd. Financial Statement Overview

Summary

Innovana Thinklabs Ltd. exhibits strong financial health with consistent revenue growth, high profitability margins, and a stable balance sheet. The company has effectively managed its debt levels while achieving impressive returns on equity. Cash flow improvements are notable, although further enhancements in cash flow efficiency could strengthen the financial position further.

Income Statement

Innovana Thinklabs Ltd. has demonstrated strong revenue growth, with a 2.65% increase in the latest year and a significant 30.5% increase the previous year. The company maintains healthy profitability, with a gross profit margin of 74.2% and a net profit margin of 42.7% for the latest year. EBIT and EBITDA margins are also robust at 47.4% and 63.9%, respectively, indicating efficient cost management and strong operational performance.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 73.8%. The debt-to-equity ratio stands at 0.22, indicating low leverage and financial stability. Return on equity is impressive at 21.5%, showcasing effective use of shareholder funds. However, the increase in total debt over the years warrants monitoring.

Cash Flow

Cash flow analysis shows a remarkable turnaround in free cash flow, with a growth rate of 278.2% in the latest year. The operating cash flow to net income ratio is 0.79, suggesting good cash generation relative to net income. The free cash flow to net income ratio is 0.43, reflecting a positive trend, although there is room for improvement in cash flow efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.03B	1.01B	791.86M	575.83M
Gross Profit	768.27M	691.13M	490.99M	357.92M
EBITDA	661.31M	591.31M	378.37M	299.55M
Net Income	441.40M	409.57M	269.01M	207.87M
Balance Sheet
Total Assets	2.78B	2.09B	1.71B	1.58B
Cash, Cash Equivalents and Short-Term Investments	120.26M	56.66M	41.92M	522.81M
Total Debt	442.18M	226.20M	123.53M	170.29M
Total Liabilities	670.43M	422.64M	600.48M	714.62M
Stockholders Equity	2.05B	1.63B	1.11B	861.30M
Cash Flow
Free Cash Flow	190.58M	-106.99M	-15.78M	-401.73M
Operating Cash Flow	348.87M	1.63M	27.96M	-37.42M
Investing Cash Flow	-187.14M	-149.38M	-456.65M	-137.96M
Financing Cash Flow	-98.13M	160.40M	-50.13M	228.07M

Innovana Thinklabs Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 413.95
• 50DMA: Negative
• 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:INNOVANA, the sentiment is Negative. The current price of 413.95 is above the 20-day moving average (MA) of 371.43, above the 50-day MA of 406.96, and below the 200-day MA of 456.94, indicating a bearish trend. The MACD of -17.89 indicates Negative momentum. The RSI at 44.17 is Neutral, neither overbought nor oversold. The STOCH value of 33.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INNOVANA.

Innovana Thinklabs Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFOBEAN	77 Outperform	₹21.02B	29.25	―	0.13%	14.57%	80.44%
MINDTECK	77 Outperform	₹7.01B	22.57	―	0.50%	0.23%	10.64%
INNOVANA	68 Neutral	₹7.57B	15.41	―	―	25.98%	18.29%
VERTOZ	63 Neutral	₹4.82B	17.60	―	―	21.99%	-14.27%
ONWARDTEC	62 Neutral	₹7.28B	17.04	―	1.84%	10.49%	69.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SUBEXLTD	46 Neutral	₹5.59B	-106.31	―	―	-9.53%	96.99%

Innovana Thinklabs Ltd. Corporate Events

Innovana Thinklabs Expands into Real Estate with New Acquisition

Innovana Thinklabs Limited, through its wholly owned subsidiary Innovana Infrastructure Limited, has acquired a 43% stake in the newly formed Innovana Real Estate Private Limited. This acquisition marks Innovana’s entry into the real estate sector, expanding its business portfolio beyond its existing operations. The acquisition is conducted as a related party transaction, with the subscription to share capital being on an arm’s length basis. This strategic move could potentially diversify Innovana’s business interests and enhance its market positioning.