Kellton Tech Solutions Ltd. (KELLTONTEC) AI Stock Analysis

• Market Cap: ₹12.28B
• Dividend Yield: N/A
• Average Volume (3M): 315.55K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.26
• 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: 513,722,400
• 10 Day Avg. Volume: 251,961
• 30 Day Avg. Volume: 315,552
• 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: ₹28.00
• Price Target Upside: 17.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 61 Neutral
• Price Target: ₹28.00 ▲(17.11% Upside)

Kellton Tech Solutions Ltd. has a solid financial foundation with strong revenue growth and improved profitability. However, cash flow challenges and neutral technical indicators suggest caution. The stock is reasonably valued, making it a moderate investment opportunity.

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

Kellton Tech Solutions Ltd. generates revenue primarily through its IT services and solutions. The company earns money by providing customized digital transformation services to businesses, which include implementing enterprise resource planning (ERP) systems, customer relationship management (CRM) solutions, and other IT infrastructure improvements. Additionally, Kellton Tech offers consulting services to help businesses optimize their operations and embrace new technologies. Key revenue streams include long-term contracts with enterprises for maintenance and support services, project-based fees for digital solutions, and consulting fees. The company may also leverage strategic partnerships with technology providers to enhance its service offerings and tap into new markets, thereby 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: 23.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 23.91 is below the 20-day moving average (MA) of 25.75, below the 50-day MA of 26.37, and below the 200-day MA of 25.96, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 34.79 is Neutral, neither overbought nor oversold. The STOCH value of 16.32 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	76 Outperform	₹12.95B	17.40	31.34%	0.05%	21.46%	29.38%
ADSL	73 Outperform	₹10.28B	28.30	5.34%	0.83%	21.48%	-25.48%
SILVERTUC	67 Neutral	₹8.96B	39.13	16.60%	0.07%	23.77%	25.92%
KELLTONTEC	61 Neutral	₹12.28B	14.13	―	―	13.61%	19.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Kellton Tech Solutions Ltd. Corporate Events

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.