Kellton Tech Solutions Ltd. (KELLTONTEC) AI Stock Analysis

• Market Cap: ₹9.13B
• Dividend Yield: N/A
• Average Volume (3M): 317.56K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.35
• Revenue Growth: 13.11%
• EPS Growth: 19.26%
• Country: IN
• Employees: 1,370
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.47
• Shares Outstanding: 527,804,700
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹23.00 ▲(21.37% Upside)

Kellton Tech Solutions Ltd. has a moderate overall stock score driven by strong financial performance in terms of revenue growth and profitability, but is offset by significant cash flow challenges. Technical indicators suggest bearish momentum, while valuation appears reasonable. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and successful client acquisition, which supports long-term business sustainability.

Balance Sheet Health

Low leverage and strong equity ratio provide financial stability and flexibility, enabling strategic investments and resilience against economic fluctuations.

Profitability Improvement

Improving profitability enhances the company's ability to reinvest in growth initiatives and improve shareholder returns over time.

Negative Factors

Cash Flow Challenges

Persistent negative cash flow could limit the company's ability to fund operations and growth, posing a risk to financial stability if not addressed.

Operational Efficiency

Moderate operational margins suggest potential inefficiencies, which could hinder profitability improvements and competitive positioning if not optimized.

Liquidity Risks

Negative cash flow relative to net income indicates potential liquidity issues, which could impact the company's ability to meet short-term obligations and invest in growth.

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, 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: 18.95
• 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:KELLTONTEC, the sentiment is Negative. The current price of 18.95 is above the 20-day moving average (MA) of 18.45, below the 50-day MA of 19.43, and below the 200-day MA of 23.34, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 36.76 is Neutral, neither overbought nor oversold. The STOCH value of 33.82 is Neutral, 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	74 Outperform	₹13.11B	16.62	―	0.05%	16.27%	24.79%
SILVERTUC	66 Neutral	₹21.14B	81.38	―	0.06%	16.93%	36.77%
ADSL	66 Neutral	₹7.67B	19.13	―	0.96%	20.23%	-17.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KELLTONTEC	58 Neutral	₹9.13B	9.84	―	―	13.11%	19.26%

Kellton Tech Solutions Ltd. Corporate Events

Kellton Tech Releases Q2 FY26 Earnings Call Recording

Kellton Tech Solutions Ltd. announced the availability of the audio recording for their Q2 FY26 earnings call, which discusses the company’s financial results for the quarter and half-year ending September 30, 2025. This announcement is part of their compliance with SEBI regulations, and the availability of the recording on their website reflects transparency and engagement with stakeholders, potentially impacting investor relations positively.

Kellton Tech Reopens Window for Physical Share Transfers

Kellton Tech Solutions Ltd. has announced the reopening of a special window for the re-lodgement of transfer requests for physical shares. This move is in compliance with the Securities and Exchange Board of India’s regulations and aims to facilitate shareholders in transferring their physical shares, potentially impacting the company’s shareholder management and engagement.