IZMO Limited (IZMO) AI Stock Analysis

• Market Cap: ₹10.57B
• Dividend Yield: N/A
• Average Volume (3M): 45.34K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 2.32
• Revenue Growth: 13.77%
• EPS Growth: -42.68%
• Country: IN
• Employees: 386
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 7.83
• Shares Outstanding: 14,962,576
• 10 Day Avg. Volume: 35,668
• 30 Day Avg. Volume: 45,337
• PEG Ratio: 0.11
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 1.81
• P/FCF Ratio: -13.59
• 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: 76 Outperform
• Price Target: ₹798.00 ▼(-2.78% Downside)
• Action: Upgraded Date: 02/19/26
• Date: Action: Upgraded 02/19/26

The score is driven primarily by solid financial performance (growth and profitability improvement with low leverage) and supportive technical uptrend/momentum. Offsetting factors are weaker cash flow quality (declining free cash flow) and a relatively high P/E valuation.

Positive Factors

Revenue Growth

Sustained revenue growth indicates expanding product adoption and market penetration for a software-app company. Over the next 2-6 months this trend supports predictable top-line momentum, capacity to scale R&D and sales investments, and provides room to absorb cyclical headwinds while funding strategic initiatives.

Improved Net Profitability

A notable improvement in net profit margin signals better cost control and pricing power, boosting retained earnings and operational resilience. Over time improved margin converts revenue into sustainable earnings, enabling reinvestment, strengthening ROE and supporting capital allocation choices across cycles.

Low Leverage / Strong Equity

A robust equity base and low leverage provide long-term financial flexibility: capacity to fund growth, withstand demand shocks, and pursue M&A or R&D without immediate refinancing pressure. This structural balance-sheet strength reduces solvency risk and maintains optionality for strategic investment.

Negative Factors

Declining Free Cash Flow

Falling free cash flow undermines the company’s ability to self-fund investments, pay down liabilities, or return cash to shareholders. Structurally, persistent FCF declines can force external financing, constrain strategic execution, and magnify risk if revenue growth stalls or capex needs increase over the next several quarters.

Weak Cash Conversion

Low cash conversion points to earnings quality issues—profitability not translating to liquid resources. Over months this can impair working capital management and limit the firm's ability to invest in growth initiatives or weather cyclical pressure, increasing reliance on external funding and raising execution risk.

Margin Pressure (EBIT/EBITDA)

Eroding core operating margins suggests cost inflation or inefficiencies that reduce operating leverage. If persistent, margin compression weakens cash generation and returns on invested capital, making it harder to sustain profitability gains and capitalize on revenue growth without structural cost fixes.

IZMO Limited Business Overview & Revenue Model

Company Description

IZMO Limited offers hi-tech automotive e-retailing solutions in India, North America, Europe, and rest of Asia. The company provides Internet solutions to the automotive industry through websites, such as izmocars.com, govirtual.com, izmocars.eu, izmocars.fr, and carazoosolutions.com. It also operates websites for various businesses and professions that include izmoweb.com and izmoweb.in. In addition, the company offers interactive media solutions for the automotive industry through automotive images and animation, virtual brochures, video brochures with voice over, and CGI graphics through websites, such as izmostock.com and izmostudio.com for stock photography, as well as izmomedia.com, izmotion.com, and izmofx.com for interactive media solutions. Further, it provides enterprise products that offers packaged product solutions to meet enterprise requirements in connectivity, security, and interoperability. The company was formerly known as Logix Microsystems Limited and changed its name to IZMO Limited in 2014. IZMO Limited was incorporated in 1995 and is based in Bengaluru, India.

How the Company Makes Money

IZMO generates revenue through multiple streams including subscription fees for its software solutions, transaction fees from online vehicle sales facilitated through its platforms, and consulting services aimed at optimizing dealership operations. The company has established significant partnerships with automotive manufacturers, dealerships, and digital marketing agencies, which not only enhances its product offerings but also expands its market reach. Additionally, IZMO's emphasis on data analytics allows it to provide valuable insights to clients, driving further business opportunities and revenue growth.

IZMO Limited Financial Statement Overview

Summary

Strong revenue growth and improved net profit margin support the score, alongside a financially stable balance sheet with low leverage. However, weaker cash conversion (declining free cash flow and low operating cash flow-to-net income) and some margin pressure in EBIT/EBITDA temper the overall financial strength.

Income Statement

IZMO Limited has shown strong revenue growth, with a notable increase in Total Revenue from the previous year. The Gross Profit Margin remains solid, indicating effective cost management. Net Profit Margin has improved significantly, reflecting enhanced profitability. However, there is a decline in EBIT and EBITDA margins compared to previous years, which could indicate rising costs or operational inefficiencies.

Balance Sheet

The company maintains a strong equity position with a healthy Debt-to-Equity Ratio, indicating low leverage and financial stability. Return on Equity (ROE) has improved, showcasing effective utilization of equity capital. The Equity Ratio remains robust, reflecting a strong asset base relative to liabilities. However, an increase in Total Liabilities could pose potential risks if not managed effectively.

Cash Flow

There is a concerning decline in Free Cash Flow, which suggests challenges in generating cash after capital expenditures. The Operating Cash Flow to Net Income Ratio is relatively low, indicating potential issues in converting profits into cash. However, the company has maintained positive Operating Cash Flow, which is a positive indicator for liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.34B	2.25B	1.87B	1.54B	1.32B	1.16B
Gross Profit	1.07B	916.13M	965.49M	844.66M	763.75M	1.14B
EBITDA	717.15M	711.73M	404.51M	326.72M	291.27M	503.84M
Net Income	488.57M	488.80M	260.51M	200.16M	160.38M	266.59M
Balance Sheet
Total Assets	0.00	4.38B	3.64B	3.23B	2.99B	2.88B
Cash, Cash Equivalents and Short-Term Investments	245.18M	530.33M	169.20M	116.36M	113.19M	228.83M
Total Debt	0.00	117.30M	85.21M	107.93M	91.76M	184.04M
Total Liabilities	-3.59B	789.05M	572.25M	501.93M	463.77M	523.32M
Stockholders Equity	3.59B	3.59B	3.06B	2.73B	2.52B	2.36B
Cash Flow
Free Cash Flow	0.00	-298.46M	11.83M	-381.00K	-91.03M	104.85M
Operating Cash Flow	0.00	35.61M	305.41M	299.11M	156.13M	368.09M
Investing Cash Flow	0.00	-22.21M	-286.93M	-292.46M	-216.26M	-235.44M
Financing Cash Flow	0.00	62.58M	34.35M	-3.47M	-55.52M	59.98M

IZMO Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 820.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IZMO, the sentiment is Negative. The current price of 820.8 is above the 20-day moving average (MA) of 787.29, above the 50-day MA of 759.73, and above the 200-day MA of 677.46, indicating a neutral trend. The MACD of 12.89 indicates Positive momentum. The RSI at 45.18 is Neutral, neither overbought nor oversold. The STOCH value of 8.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IZMO.

IZMO Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IZMO	76 Outperform	₹10.57B	28.33	―	―	13.77%	-42.68%
SOFTTECH	62 Neutral	₹3.78B	146.81	―	―	27.33%	-61.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.52B	7.92	―	―	-1.07%	187.83%
FCSSOFT	52 Neutral	₹2.60B	-93.83	―	―	―	―
ASMS	43 Neutral	₹2.99B	61.89	―	―	―	―

IZMO Limited Corporate Events

IZMO’s FrogData Joins FordDirect’s The Shop to Boost Ford and Lincoln Dealership Service Operations

IZMO Limited’s division FrogData has partnered with FordDirect to offer its FixedOps Solutions Suite on The Shop, FordDirect’s curated e-commerce marketplace for Ford dealers and Lincoln retailers in the United States. By listing its FixedOps Mojo service operations intelligence platform and FixedOps Velocity hyperlocal service marketing program on The Shop, FrogData gains direct, vetted access to a large dealer base at pre-negotiated pricing, positioning the company to play a larger role in improving service profitability, operational efficiency, and customer retention for Ford and Lincoln dealerships amid rising demands on dealership resources.

izmo Microsystems Unveils Space-Grade 3D SiP With 84% Footprint Reduction

IZMO Limited announced that its izmo Microsystems division has designed a high-complexity 3D System-in-Package module for space payload camera electronics, shrinking a traditional 200 mm × 200 mm PCB design into an 81 mm × 81 mm SiP and achieving an 84% reduction in footprint. Built using stacked substrates, high-density wire bonding and a fully indigenized hermetic ceramic package engineered in India, the solution delivers space-grade reliability and robustness while reducing dependence on restricted foreign technologies, positioning the company among a select group of global players in advanced 3D heterogeneous integration for space applications and strengthening India’s sovereign base for future Silicon Photonics and Quantum Communications.