IZMO Limited (IZMO) AI Stock Analysis

• Market Cap: ₹11.01B
• Dividend Yield: N/A
• Average Volume (3M): 45.34K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 2.09
• 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: ₹832.00 ▲(1.36% Upside)
• 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

A ~9.5% reported revenue growth rate shows sustained demand and expanding customer adoption in the application software market. Over the next several months steady top-line growth supports operating leverage, reinvestment in product, and durable market-share gains.

Improving Net Profit Margin

Improved net profit margins indicate stronger pricing power, cost discipline, or a favorable revenue mix. Sustained margin improvement enhances internal funding for R&D and sales, boosts retained earnings, and supports long-term scalability and resilience against cyclical headwinds.

Low Leverage / Strong Equity

A strong equity base and healthy debt-to-equity ratio provide financial flexibility for capex, product investment, or M&A without stressing the balance sheet. Low leverage reduces refinancing risk and supports multi-quarter stability in a capital-intensive software growth strategy.

Negative Factors

Declining Free Cash Flow

A declining free cash flow trend reduces the company's ability to self-fund growth, pay down debt, or return capital. If FCF weakness persists, management may need external financing or to defer strategic projects, reducing long-term operational flexibility.

Weak Cash Conversion

A low operating-cash-flow-to-net-income ratio signals earnings may not be converting into cash efficiently, possibly due to working-capital build or accruals. Weaker cash conversion raises earnings quality concerns and can constrain durable cash generation during downturns.

EBIT/EBITDA Margin Pressure

Declining EBIT and EBITDA margins point to rising operating costs or deteriorating operational efficiency. Persistent margin compression would erode returns on invested capital, limit reinvestment capacity, and pressure long-term profitability even if revenues continue to grow.

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

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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	2.35B	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	511.79M	711.73M	404.51M	326.72M	291.27M	503.84M
Net Income	315.12M	488.80M	260.51M	200.16M	160.38M	266.59M
Balance Sheet
Total Assets	4.67B	4.38B	3.64B	3.23B	2.99B	2.88B
Cash, Cash Equivalents and Short-Term Investments	603.07M	530.33M	169.20M	116.36M	113.19M	228.83M
Total Debt	69.06M	117.30M	85.21M	107.93M	91.76M	184.04M
Total Liabilities	878.31M	789.05M	572.25M	501.93M	463.77M	523.32M
Stockholders Equity	3.79B	3.59B	3.06B	2.73B	2.52B	2.36B
Cash Flow
Free Cash Flow	-87.38M	-298.46M	11.83M	-381.00K	-91.03M	104.85M
Operating Cash Flow	38.72M	35.61M	305.41M	299.11M	156.13M	368.09M
Investing Cash Flow	-159.03M	-22.21M	-286.93M	-292.46M	-216.26M	-235.44M
Financing Cash Flow	4.25M	62.58M	34.35M	-3.47M	-55.52M	59.98M

IZMO Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IZMO, the sentiment is Neutral. The current price of 820.8 is above the 20-day moving average (MA) of 760.79, above the 50-day MA of 738.83, and above the 200-day MA of 697.52, indicating a neutral trend. The MACD of -10.11 indicates Positive momentum. The RSI at 48.50 is Neutral, neither overbought nor oversold. The STOCH value of 63.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	₹11.01B	25.93	―	―	13.77%	-42.68%
SOFTTECH	62 Neutral	₹3.53B	78.15	―	―	27.33%	-61.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.05B	4.73	―	―	-1.07%	187.83%
FCSSOFT	52 Neutral	₹2.44B	-39.66	―	―	―	―
ASMS	43 Neutral	₹2.50B	37.09	―	―	―	―

IZMO Limited Corporate Events

Izmo Microsystems Strikes European Photonics Pact to Bolster Silicon Photonics Capabilities

Izmo Microsystems, the semiconductor division of NSE-listed IZMO Limited, has entered a three-way strategic partnership with Swiss thin-film lithium niobate photonic chip foundry CCRAFT and Madrid-based photonics IP specialist Alcyon Photonics. The collaboration is structured to jointly design, manufacture, and commercialise photonic integrated circuit solutions targeting datacom, telecom, aerospace, sensor, and quantum-related applications.

The deal combines CCRAFT’s high-speed TFLN chip manufacturing, Alcyon’s fabrication-ready photonic IP libraries, and izmo Microsystems’ advanced packaging and co-packaged optics capabilities in India, effectively creating an integrated photonics value chain across Europe and Asia. By tying European chip and design expertise to its packaging infrastructure, izmo aims to deepen links with Europe’s photonics ecosystem and strengthen India’s role in the fast-growing global silicon photonics market that underpins AI data centres and next-generation communication networks.

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.