Palred Technologies Limited (PALREDTEC) AI Stock Analysis

• Market Cap: ₹364.16M
• Dividend Yield: N/A
• Average Volume (3M): 7.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -15.69%
• EPS Growth: -73.80%
• Country: IN
• Employees: 1,425
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.82
• Shares Outstanding: 12,232,566
• 10 Day Avg. Volume: 10,950
• 30 Day Avg. Volume: 7,783
• PEG Ratio: -0.05
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 4.62
• 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: 44 Neutral
• Price Target: ₹29.00 ▼(-38.83% Downside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

Palred Technologies' overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The technical analysis indicates a bearish trend, further weighing down the score. The absence of positive earnings call insights or corporate events leaves the stock with limited upside potential.

Positive Factors

Moderate leverage and equity financing

A moderate debt load with a meaningful equity portion provides a structural buffer against shocks and supports capital allocation flexibility. Over the next several months this balance can help the company sustain operations, avoid urgent refinancing, and fund selective investments if operating performance stabilizes.

Improving operating cash flow

The shift to positive operating cash flow marks a durable improvement in core cash generation, which if sustained can reduce reliance on external financing, enable reinvestment in product and service delivery, and improve coverage of interest and capex over a multi-quarter horizon.

Scale in IT services industry

Being a sizable operator in Information Technology Services with ~1,425 employees gives structural advantages: delivery capacity, client coverage, and operational scale. This base supports service continuity and the ability to pursue contract wins or margin recovery as demand normalizes over several months.

Negative Factors

Declining revenues and profitability

Persistently falling revenue and negative margins point to structural weaknesses in pricing, cost structure, or demand for offerings. If revenue contraction and unprofitable operations continue, the company will face sustained pressure on cash generation, investment capacity, and long-term viability without material operational changes.

Volatile free cash flow

High variability in free cash flow undermines the predictability needed for steady investment, debt servicing, and strategic planning. Even with recent improvement, inconsistent cash generation raises refinancing and liquidity risk and can constrain reinvestment or hiring decisions over the coming quarters.

Declining equity levels

Eroding equity reduces the balance sheet cushion that absorbs losses and supports lending covenants. Falling shareholder equity increases leverage ratios and limits financial flexibility, making it harder to fund growth or withstand further operational setbacks over a medium-term horizon.

Palred Technologies Limited Business Overview & Revenue Model

Company Description

Palred Technologies Limited engages in the e-commerce, information technology, and media and entertainment businesses in India. It offers middleware and master data management services. The company also operates LatestOne.com, an e-commerce Website which sells tech and mobile accessories, such as Bluetooth speakers and headsets, cables, power banks, headsets, smart watches, fashion accessories, etc.; Saverable.com for banking accounts, insurance schemes, loan offers, and various other products; and Great indian t.com, an online entertainment site for uploading videos. In addition, it offers system and process solutions for media and entertainment businesses. The company was formerly known as Four Soft Technologies Limited and changed its name to Palred Technologies Limited in January 2014. Palred Technologies Limited was incorporated in 1999 and is based in Hyderabad, India.

How the Company Makes Money

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Palred Technologies Limited Financial Statement Overview

Summary

Palred Technologies faces significant challenges with declining revenues and profitability. The balance sheet shows moderate leverage but declining equity levels, which could pose risks. Recent improvements in cash flow are promising, though sustained performance is necessary for a positive outlook.

Income Statement

Palred Technologies Limited has faced declining revenues and profitability. The revenue growth has been inconsistent, with a significant decline in the most recent year. Gross profit margin and net profit margin have been negative, indicating struggles with profitability. The negative EBIT and EBITDA margins further highlight operational challenges.

Balance Sheet

The company's balance sheet shows moderate leverage with a debt-to-equity ratio that suggests a balanced debt load relative to equity. However, declining equity over the years signals potential risk. The equity ratio demonstrates that a reasonable portion of assets is financed by equity, which provides some stability.

Cash Flow

Free cash flow has been volatile, with recent improvement indicating potential recovery. Operating cash flow has been negative in prior years but turned positive in the latest period, suggesting better cash generation from operations. However, the consistency of these improvements remains to be seen.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	751.13M	856.66M	1.16B	1.48B	1.28B	1.17B
Gross Profit	123.27M	159.43M	246.81M	279.37M	278.93M	282.77M
EBITDA	-36.41M	-17.59M	29.52M	50.42M	21.99M	70.15M
Net Income	-89.50M	-77.58M	-34.23M	-382.00K	-17.14M	25.14M
Balance Sheet
Total Assets	1.15B	1.16B	1.29B	1.30B	756.12M	674.91M
Cash, Cash Equivalents and Short-Term Investments	575.42M	558.28M	524.95M	485.10M	241.94M	184.84M
Total Debt	585.92M	583.17M	662.14M	604.58M	335.53M	301.07M
Total Liabilities	727.38M	693.22M	725.10M	683.23M	372.85M	357.28M
Stockholders Equity	452.54M	484.13M	562.87M	597.65M	358.17M	293.04M
Cash Flow
Free Cash Flow	15.81M	109.21M	-27.39M	-199.32M	-33.58M	-134.08M
Operating Cash Flow	16.04M	109.69M	-24.29M	-183.23M	-32.17M	-132.93M
Investing Cash Flow	1.80M	-35.39M	1.96M	-249.28M	-44.56M	-28.88M
Financing Cash Flow	-22.22M	-75.25M	26.33M	433.34M	74.48M	132.79M

Palred Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.41
• 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:PALREDTEC, the sentiment is Negative. The current price of 47.41 is above the 20-day moving average (MA) of 32.22, above the 50-day MA of 37.32, and below the 200-day MA of 48.00, indicating a bearish trend. The MACD of -2.38 indicates Positive momentum. The RSI at 31.19 is Neutral, neither overbought nor oversold. The STOCH value of 31.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PALREDTEC.

Palred 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%
CALSOFT	60 Neutral	₹767.91M	25.96	―	―	―	―
ADROITINFO	55 Neutral	₹484.89M	9.19	―	―	38.47%	-83.43%
PALREDTEC	44 Neutral	₹364.16M	-13.00	―	―	-15.69%	-73.80%
LCCINFOTEC	41 Neutral	₹659.55M	-4,159.50	―	―	―	―
SECURKLOUD	41 Neutral	₹728.69M	-10.16	―	―	-48.96%	-422.00%
CEREBRAINT	40 Underperform	₹493.23M	-1.07	―	―	-65.17%	64.70%

Palred Technologies Limited Corporate Events

Palred Technologies to Close Trading Window Ahead of Q3 FY2026 Results

Palred Technologies Limited has announced that, in line with SEBI’s Prohibition of Insider Trading Regulations and related stock exchange circulars, it will close its trading window for company securities from 1 January 2026. The window will reopen 48 hours after the Board approves and declares the unaudited financial results for the quarter ended 31 December 2025, with all designated persons and their immediate relatives barred from trading in the company’s shares during this period, underscoring the firm’s compliance focus and efforts to prevent insider trading ahead of key financial disclosures.