Onward Technologies Limited (ONWARDTEC) AI Stock Analysis

• Market Cap: ₹7.08B
• Dividend Yield: 1.84%
• Average Volume (3M): 2.12K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.89
• Revenue Growth: 10.49%
• EPS Growth: 69.49%
• Country: IN
• Employees: 2,529
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 5.26
• Shares Outstanding: 22,742,970
• 10 Day Avg. Volume: 1,578
• 30 Day Avg. Volume: 2,118
• PEG Ratio: -1.05
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 20.29
• 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: 62 Neutral
• Price Target: ₹289.00 ▼(-5.94% Downside)

Onward Technologies Limited's overall stock score is primarily influenced by its strong financial performance, which is offset by bearish technical indicators. The valuation is reasonable, but the lack of earnings call data and corporate events limits additional insights. The stock's current technical weakness suggests caution for potential investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and capacity for strategic investments.

Cash Flow Management

Positive operating cash flow supports operational sustainability and strategic growth, ensuring the company can meet obligations and invest in future opportunities.

Negative Factors

Net Profit Margin Fluctuations

Fluctuating net profit margins can indicate challenges in cost control or pricing power, potentially impacting long-term profitability and shareholder returns.

Return on Equity Volatility

Volatile return on equity may signal inconsistent earnings performance, affecting investor confidence and the company's ability to generate shareholder value.

Decline in Free Cash Flow

A decline in free cash flow can limit the company's ability to fund new projects, pay dividends, or reduce debt, potentially hindering growth prospects.

Onward Technologies Limited Business Overview & Revenue Model

Company Description

Onward Technologies Limited provides mechanical engineering design and IT consulting services in India and internationally. The company offers digital transformation, embedded systems, engineering technology, data analytics, artificial intelligence, and machine learning products and services. It also offers digital engineering, embedded electronics, mechanical engineering, and enterprise IT related services. The company serves automotive, manufacturing, e-commerce, semiconductor, ICT, and medical technology industries. The company was incorporated in 1991 and is based in Mumbai, India. Onward Technologies Limited is a subsidiary of Onward Network Technologies Private Limited.

How the Company Makes Money

Onward Technologies Limited generates revenue through multiple channels, primarily by providing engineering and IT services to clients in various industries. The company charges fees for its consulting, product development, and software services, often structured as project-based contracts or retainer agreements. Key revenue streams include long-term partnerships with major corporations in sectors like automotive and aerospace, which provide a steady flow of income. Additionally, ONWARDTEC may also earn revenue from licensing proprietary software solutions and offering maintenance and support services. Strategic alliances with technology leaders further enhance its service offerings, allowing the company to tap into new markets and increase its earnings potential.

Onward Technologies Limited Financial Statement Overview

Summary

Onward Technologies Limited shows strong financial health with consistent revenue growth and efficient cost management. However, fluctuations in net profit margin and return on equity indicate challenges in maintaining profitability.

Income Statement

Onward Technologies Limited has demonstrated robust revenue growth over the years, with a consistent increase in total revenue from 2020 to 2025. The gross profit margin is healthy, reflecting efficient cost management. However, there is a noticeable fluctuation in net profit margin, with a decline in recent years, indicating potential challenges in maintaining profitability.

Balance Sheet

The company maintains a strong equity position, with a healthy equity ratio indicating stability. The debt-to-equity ratio is low, suggesting manageable leverage and financial health. However, the return on equity has shown some volatility, reflecting fluctuations in profitability relative to equity.

Cash Flow

Operating cash flow remains positive, allowing for reinvestment and debt servicing. Despite a decline in free cash flow in some years, the overall trend shows improvement. The operating cash flow to net income ratio suggests effective cash management relative to reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.07B	4.91B	4.72B	4.41B	3.07B	2.40B
Gross Profit	674.97M	608.58M	1.12B	420.41M	500.18M	330.29M
EBITDA	552.13M	446.96M	594.73M	326.77M	429.40M	225.81M
Net Income	327.21M	270.78M	339.18M	114.80M	236.84M	73.38M
Balance Sheet
Total Assets	0.00	3.14B	2.87B	2.42B	2.29B	1.38B
Cash, Cash Equivalents and Short-Term Investments	913.46M	933.62M	853.73M	482.01M	495.15M	285.90M
Total Debt	0.00	321.60M	282.72M	167.26M	186.98M	250.99M
Total Liabilities	-2.24B	894.54M	798.09M	683.84M	662.31M	632.00M
Stockholders Equity	2.24B	2.24B	2.07B	1.74B	1.63B	744.81M
Cash Flow
Free Cash Flow	0.00	291.46M	603.32M	-14.55M	-262.84M	196.00M
Operating Cash Flow	0.00	315.23M	623.49M	57.46M	-39.29M	329.62M
Investing Cash Flow	0.00	-171.77M	-623.38M	60.09M	-315.96M	-98.70M
Financing Cash Flow	0.00	-212.19M	-161.66M	-142.14M	565.71M	-122.63M

Onward Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 307.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ONWARDTEC, the sentiment is Positive. The current price of 307.25 is above the 20-day moving average (MA) of 286.62, above the 50-day MA of 285.67, and above the 200-day MA of 298.43, indicating a bullish trend. The MACD of 5.45 indicates Negative momentum. The RSI at 61.11 is Neutral, neither overbought nor oversold. The STOCH value of 57.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ONWARDTEC.

Onward Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MINDTECK	77 Outperform	₹7.13B	22.94	―	0.50%	0.23%	10.64%
INFOBEAN	75 Outperform	₹19.77B	31.25	―	0.13%	14.57%	80.44%
VERTOZ	63 Neutral	₹5.89B	21.49	―	―	21.99%	-14.27%
ONWARDTEC	62 Neutral	₹7.08B	17.19	―	1.84%	10.49%	69.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSPIRISYS	61 Neutral	₹3.30B	8.46	―	―	-1.07%	187.83%
SUBEXLTD	50 Neutral	₹5.81B	-110.48	―	―	-9.53%	96.99%

Onward Technologies Limited Corporate Events

Onward Technologies Publishes Notice on Re‑lodged Share Transfer Under SEBI Norms

Onward Technologies Limited has notified the stock exchanges that a shareholder has re-lodged a request for transfer of shares, and that the company has published the requisite notice in newspapers pursuant to a recent Securities and Exchange Board of India circular dated July 2, 2025. The disclosure, made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, underscores the company’s compliance with updated share transfer norms and ensures transparency for investors and other capital-market stakeholders regarding pending share transfer documentation.

Onward Technologies Releases Q2 2025 Financial Results

Onward Technologies Limited announced the publication of its unaudited financial results for the quarter and half-year ending September 30, 2025. These results were published in the Free Press Journal and Navshakti newspapers and are available on the company’s website. This disclosure, made in compliance with SEBI regulations, provides stakeholders with updated financial performance data, potentially impacting investor decisions and market perception.