Melstar Information Technologies Limited (MELSTAR) AI Stock Analysis

• Market Cap: ₹61.70M
• Dividend Yield: N/A
• Average Volume (3M): N/A
• Price to Earnings (P/E): ―
• Beta (1Y): -0.22
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 81
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -3.07
• Shares Outstanding: 285,663
• 10 Day Avg. Volume: N/A
• 30 Day Avg. Volume: N/A
• PEG Ratio: 9.69
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.52
• 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: 42 Neutral
• Price Target: ―

The score is primarily held down by weak and highly volatile financial performance, including near-zero recent revenue and a sharp deterioration in 2025 cash flows. Technical and valuation signals could not be evaluated due to missing indicator and valuation data.

Melstar Information Technologies Limited Business Overview & Revenue Model

Company Description

Melstar Information Technologies Limited, a software services company, provides various information technology (IT) solutions primarily to banking, insurance, government, education, healthcare, and IT sectors in India and internationally. It offers application development services; application management, maintenance, and support services; packaged application services, including consulting, implementation, application maintenance and support, upgrades, and testing in the areas of enterprise resource planning; testing and applications modernization services; and other technology services. In addition, the company provides man power supply services. Melstar Information Technologies Limited was incorporated in 1986 and is based in Mumbai, India.

How the Company Makes Money

Melstar Information Technologies Limited Financial Statement Overview

Summary

Overall financial statement quality is weak: revenue effectively disappears in recent years, earnings are highly volatile (large 2024 profit followed by a 2025 loss), and 2025 operating/free cash flow turns sharply negative. Balance sheet leverage is moderate with recently positive equity, but the prior multi-year negative equity history and current cash burn elevate risk.

Income Statement

Profitability and revenue quality look highly unstable. Revenue collapses from 111.3M (2020) to 11.7M (2021) and is effectively zero from 2023–2025, making margin signals less meaningful in recent years. Earnings are also volatile: a large profit in 2024 (net income 112.8M) is followed by a sharp reversal to a loss in 2025 (net income -12.1M), while EBIT remains negative across multiple years—suggesting the core operating picture is weak and results may be driven by non-operating items or one-offs.

Balance Sheet

Leverage appears moderate in the most recent periods (debt-to-equity ~0.41 in 2025 and ~0.47 in 2024) and equity has improved to positive levels (70.1M in 2025 vs. 60.8M in 2024). However, the company previously carried negative equity (2020–2023), highlighting a history of balance-sheet stress and lower financial flexibility. Total debt is fairly steady around 28.8–29.7M, but the turnaround in equity is recent and needs to be sustained.

Cash Flow

Cash generation is inconsistent and has recently deteriorated. 2025 shows deeply negative operating cash flow (-22.7M) and free cash flow (-22.9M), a significant swing from positive free cash flow in 2024 (5.4M). Earlier years also alternate between positive and negative cash flow (e.g., positive in 2020, negative in 2021 and 2023), indicating weak predictability and limited self-funding capacity during down periods.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	51.00K	11.73M
Gross Profit	-5.32M	0.00	0.00	0.00	19.00K	-5.95M
EBITDA	-12.11M	-12.11K	116.03M	126.48K	-3.86M	-17.82M
Net Income	-12.12M	-12.12K	112.79M	-102.00K	-4.09M	-17.82M
Balance Sheet
Total Assets	103.21M	103.21M	99.86M	86.18M	87.43M	89.88M
Cash, Cash Equivalents and Short-Term Investments	1.77M	1.77M	3.18M	991.00K	2.24M	721.00K
Total Debt	28.82M	28.82M	28.84M	29.70M	29.70M	29.70M
Total Liabilities	33.08M	33.08M	39.07M	141.54M	142.69M	142.14M
Stockholders Equity	70.14M	70.14M	60.79M	-55.36M	-55.26M	-52.26M
Cash Flow
Free Cash Flow	-12.61K	-22.86M	5.43M	-1.25M	418.00K	-11.43M
Operating Cash Flow	-12.61K	-22.70M	5.43M	-1.25M	418.00K	-11.43M
Investing Cash Flow	0.00	-162.00K	0.00	0.00	0.00	-1.30M
Financing Cash Flow	11.83K	21.45M	-3.24M	0.00	1.10M	500.00K

Melstar Information Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MELSTAR	42 Neutral	₹61.70M	―	―	―	―	―
TECHIN	42 Neutral	₹217.33M	-43.19	―	―	―	―
QUINTEGRA	40 Underperform	₹43.97M	-40.96	―	―	―	―

Melstar Information Technologies Limited Corporate Events

Melstar Information Technologies Closes Trading Window Ahead of Q3 Results

Melstar Information Technologies has announced the closure of its trading window for designated employees, connected persons, and their immediate relatives from 1 January 2026 until 48 hours after the publication of its unaudited financial results for the third quarter ended 31 December 2025. The move, taken in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, underscores its adherence to corporate governance norms and aims to prevent insider trading ahead of the forthcoming quarterly results, reinforcing regulatory compliance for all key stakeholders.