Kellton Tech Solutions Ltd. (KELLTONTEC) AI Stock Analysis

• Market Cap: ₹10.67B
• Dividend Yield: N/A
• Average Volume (3M): 317.56K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.21
• Revenue Growth: 13.61%
• EPS Growth: 19.83%
• Country: IN
• Employees: 1,370
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.46
• Shares Outstanding: 517,745,900
• 10 Day Avg. Volume: 190,019
• 30 Day Avg. Volume: 317,560
• PEG Ratio: 0.53
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -27.06
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: ₹23.00 ▲(12.36% Upside)

Kellton Tech Solutions Ltd. has a moderate overall stock score driven by strong financial performance in terms of revenue growth and profitability. However, technical analysis indicates bearish momentum, and cash flow issues pose risks. The valuation is reasonable, but the lack of a dividend yield may deter some investors.

Kellton Tech Solutions Ltd. Business Overview & Revenue Model

Company Description

Kellton Tech Solutions Limited provides digital transformation, ERP, and other IT services worldwide. The company offers agile software development, digital commerce and marketing, digital integration solutions, outsourced product development, platform modernization, professional, research and development, technology consulting, and testing and automation services. It also provides digital transformation solutions, including artificial intelligence and machine learning, augmented and virtual reality, block chain, data science and analytics, design, enterprise mobility, Internet of Things, and robotic process automation. In addition, the company offers Kellton4Media, a solution that gives control for ad publishing; KLGAME, a location-based gamification, analytics, and messaging engine platform; Optima, an IoT enabled digital oilfield analytics platform; and tHRive, a human capital management solution, which engages in real-time staff tracking, performance governance, and operations. Further, it provides KeLive, a white-labeled, cloud-based building management solution; and backend, front end, cloud based, devops, content management system, hybrid integration, mobile application development, and stack open-source services. Kellton Tech Solutions Limited was incorporated in 1993 and is headquartered in Hyderabad, India.

How the Company Makes Money

KELLTONTEC generates revenue primarily through its diverse range of IT services, including consulting, software development, and digital transformation projects. The company operates on a project-based revenue model, where it charges clients for the delivery of specific projects and services. Key revenue streams include custom software development, application management, and ongoing IT support services. Additionally, KELLTONTEC benefits from long-term contracts and partnerships with major enterprises, which provide a steady flow of income. The company also engages in strategic alliances with technology providers to enhance its service offerings, further contributing to its earnings.

Kellton Tech Solutions Ltd. Financial Statement Overview

Summary

Kellton Tech Solutions Ltd. shows strong revenue growth and improved profitability with a solid balance sheet. However, cash flow challenges, particularly negative free cash flow and operating cash flow, pose risks to financial stability.

Income Statement

Kellton Tech Solutions Ltd. has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 11.67% in the most recent year. The gross profit margin is healthy at approximately 51.4%, and the net profit margin has improved to 7.26% from previous losses, indicating an upward trajectory in profitability. However, the EBIT and EBITDA margins, while positive, are still relatively moderate at 10.08% and 11.82% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet reflects solid financial health, with a debt-to-equity ratio of 0.30, demonstrating low leverage and effective debt management. The equity ratio stands strong at 67.85%, indicating robust shareholder backing. Return on equity is at 14.89%, showcasing efficient use of equity to generate profits. The overall asset base has expanded, supporting the company's growth trajectory.

Cash Flow

Cash flow analysis highlights some concerns, with a negative free cash flow and operating cash flow for the latest period, indicating potential liquidity issues. Free cash flow growth shows volatility, having swung into negative territory recently. The operating cash flow to net income ratio is negative, suggesting that the company may not be generating sufficient cash from its operations relative to its net income. This could pose risks if the trend continues.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.31B	10.98B	9.83B	9.17B	8.43B	7.76B
Gross Profit	5.97B	5.64B	1.80B	4.53B	8.40B	7.61B
EBITDA	1.33B	1.30B	1.04B	-883.74M	1.06B	1.12B
Net Income	824.32M	797.24M	640.11M	-1.27B	704.45M	711.24M
Balance Sheet
Total Assets	0.00	7.89B	6.60B	5.96B	6.72B	6.32B
Cash, Cash Equivalents and Short-Term Investments	275.30M	2.97B	276.97M	298.28M	248.15M	388.17M
Total Debt	0.00	1.63B	1.56B	1.62B	1.22B	1.09B
Total Liabilities	-5.35B	2.54B	2.17B	2.23B	1.93B	2.11B
Stockholders Equity	5.35B	5.35B	4.43B	3.73B	4.79B	4.21B
Cash Flow
Free Cash Flow	0.00	-390.47M	164.79M	34.86M	-114.17M	737.63M
Operating Cash Flow	0.00	-144.00M	561.99M	242.82M	6.69M	794.78M
Investing Cash Flow	0.00	-245.41M	-396.44M	-721.31M	-41.44M	315.60M
Financing Cash Flow	0.00	387.75M	-186.85M	528.61M	-105.27M	-1.02B

Kellton Tech Solutions Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:KELLTONTEC, the sentiment is Negative. The current price of 20.47 is below the 20-day moving average (MA) of 23.12, below the 50-day MA of 24.87, and below the 200-day MA of 25.28, indicating a bearish trend. The MACD of -1.08 indicates Positive momentum. The RSI at 23.56 is Positive, neither overbought nor oversold. The STOCH value of 4.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:KELLTONTEC.

Kellton Tech Solutions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSSL	―	₹11.75B	15.79	―	0.05%	21.46%	29.38%
ADSL	―	₹10.29B	28.31	―	0.83%	21.48%	-25.48%
SILVERTUC	―	₹8.82B	38.48	―	0.07%	23.77%	25.92%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KELLTONTEC	―	₹10.67B	12.18	―	―	13.61%	19.83%

Kellton Tech Solutions Ltd. Corporate Events

Kellton Tech Allots 55 Lakh Convertible Warrants to Boost Capital

Kellton Tech Solutions Ltd. has announced the allotment of 55,00,000 convertible warrants on a preferential basis, each convertible into one equity share. The Board of Directors approved this issuance, with 25% of the consideration already received and the remaining 75% payable upon conversion within 18 months. The Securities Issuance Committee is tasked with overseeing the entire process, including issuance, allotment, and necessary filings, potentially impacting the company’s capital structure and market positioning.

Kellton Tech and E-Group ICT Partner to Build Sovereign AI Ecosystem

Kellton Tech Solutions Ltd. has signed a Memorandum of Understanding with Hungary-based E-Group ICT Software Zrt to develop a sovereign AI ecosystem under the EU–India Framework Agreement. This collaboration aims to create an AI Gigafactory, combining Europe’s vision for AI sovereignty with India’s technological expertise, focusing on secure, ethical, and scalable AI ecosystems. The partnership underscores the alignment between Europe’s strategic priorities and India’s innovation capabilities, setting a benchmark for cross-regional cooperation in AI development.

Kellton Tech Expands Equity Base with FCCB Conversion

Kellton Tech Solutions Ltd. has announced the allotment of over 20 million equity shares following the conversion of Foreign Currency Convertible Bonds (FCCBs). This move increases the company’s paid-up equity share capital, reflecting a strategic financial maneuver to bolster its capital structure and potentially enhance its market position.