Updater Services Limited (UDS) AI Stock Analysis

• Market Cap: ₹10.33B
• Dividend Yield: N/A
• Average Volume (3M): 16.61K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.98
• Revenue Growth: 8.98%
• EPS Growth: 13.54%
• Country: IN
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Specialty Business Services
• EPS (TTM): 1.37
• Shares Outstanding: 66,953,240
• 10 Day Avg. Volume: 12,585
• 30 Day Avg. Volume: 16,607
• PEG Ratio: 0.29
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 52.51
• 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): 20.55
• Revenue Forecast (FY): ₹30.18B

• Rating: 63 Neutral
• Price Target: ₹163.00 ▼(-11.00% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Updater Services Limited's strong financial performance is a key strength, with robust revenue growth and solid margins. However, the technical analysis indicates bearish momentum, which is a significant risk factor. The valuation is reasonable, but the lack of a dividend yield may deter some investors. Overall, the stock presents a mixed outlook with strong fundamentals but current negative market sentiment.

Positive Factors

Revenue Growth

Sustained revenue growth near 12% reflects expanding contract wins and/or higher scope within existing outsourcing relationships. For a services business with recurring contract billing, this durable top-line expansion supports scale benefits, predictable cash flow potential, and long‑term competitive position.

High Gross Margin

An exceptionally high gross margin indicates low direct cost intensity in reported revenues and strong pricing or fee structure. Combined with improving net, EBIT and EBITDA margins, this suggests structural cost control and operating leverage that can sustain profitability as revenue scales across client contracts and service lines.

Strong Balance Sheet

Very low leverage and a solid equity ratio reduce financial risk and enhance resilience to demand cycles. Improved ROE demonstrates more efficient use of capital. This financial flexibility supports bidding on larger contracts, funding working capital needs, and incremental investments without stressing the balance sheet.

Negative Factors

Cash Conversion Efficiency

Relatively low conversion of accounting profits into operating and free cash flow suggests receivables, working capital or timing issues common in B2B services. Persistent weak cash conversion can constrain reinvestment, slow contract onboarding, and require external financing during growth phases, pressuring long‑term flexibility.

Negative EPS Growth

Material negative EPS growth despite revenue gains implies margin volatility, cost pressure, or one‑off items affecting bottom‑line durability. If earnings decline persist, the company may face challenges funding investments internally, maintaining investor confidence, and demonstrating consistent profitability across operating cycles.

No Dividend Yield

Lack of a dividend reduces appeal to income‑oriented shareholders and may signal prioritization of reinvestment or cash retention. For an established services firm, initiating a dividend could broaden investor base; its absence can limit long‑term shareholder returns and reduce options for returning excess cash to investors.

Updater Services Limited Business Overview & Revenue Model

Company Description

Updater Services Limited, an integrated business services platform, provides integrated facilities management (IFM) and business support services (BSS) in India. It operates through two segments, IFM & Other Services; and BSS. The company's IFM & Other Services segments provides soft services, such as housekeeping and cleaning, disinfecting and sanitizing, pest control, horticulture, and facade cleaning services; production support services to manufacturing facilities, including material handling, material movement, on-site warehouse management, stores and inventory management, production support, and equipment maintenance; engineering services, such as mechanical, electrical, and plumbing; and washroom and feminine hygiene care solutions. This segment also provides other services, such as warehouse management, general staffing, and institutional catering services. The company's BSS segment provides sales enablement, employee background verification check, audit and assurance, airport ground handling, and mailroom management and niche logistics services. It serves customers in a range of sectors, including FMCG, manufacturing and engineering, banking, financial services, and insurance, healthcare, information technology/information technology enabled services, automobiles, logistics and warehousing, airports, ports, infrastructure, retail, and others. The company was founded in 1985 and is based in Chennai, India.

How the Company Makes Money

Updater Services Limited generates revenue primarily through subscription fees from users accessing its platform and services. The company offers various tiered plans that cater to both individual consumers and enterprise clients, allowing them to utilize UDS's comprehensive moving solutions. Additionally, UDS partners with utility companies, real estate firms, and moving service providers, earning referral fees and commissions for facilitating connections between customers and these service providers. These strategic partnerships not only enhance UDS's service offerings but also contribute significantly to its revenue streams.

Updater Services Limited Financial Statement Overview

Summary

Updater Services Limited demonstrates strong financial performance with impressive revenue and profit growth, robust margins, and a solid balance sheet characterized by low leverage and high equity. The company has shown consistent improvement in profitability and financial stability, although there is room to enhance cash flow efficiency.

Income Statement

Updater Services Limited has shown strong revenue growth over the past few years, with the most recent annual growth rate at 11.95%. The gross profit margin is exceptionally high at 96.67% for the latest period, indicating effective cost management. The net profit margin has improved significantly to 4.34%, reflecting enhanced profitability. EBIT and EBITDA margins are also robust at 4.84% and 7.39%, respectively, showcasing operational efficiency. Overall, the income statement reflects a strong upward trajectory in revenue and profitability.

Balance Sheet

The company's balance sheet indicates a healthy financial position with a low debt-to-equity ratio of 0.11, suggesting low leverage and reduced financial risk. The return on equity (ROE) has improved to 12.40%, indicating efficient use of equity capital. The equity ratio is solid at 60.36%, reflecting strong shareholder equity relative to total assets. However, the decline in total liabilities over the years reflects prudent financial management. Overall, the balance sheet reveals strong financial stability with low leverage.

Cash Flow

The cash flow statement shows positive trends, with free cash flow growth of 6.90% in the latest period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.43, which is relatively low, suggesting room for improvement in operational cash generation. The free cash flow to net income ratio is 0.31, indicating a moderate conversion of income to cash. Overall, while cash flows are positive, there is potential for better cash conversion efficiency.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	27.84B	27.36B	24.44B	20.99B	14.84B	12.10B
Gross Profit	26.93B	26.45B	23.18B	2.77B	2.22B	1.46B
EBITDA	1.99B	2.02B	1.58B	1.06B	924.82M	723.83M
Net Income	1.22B	1.19B	679.46M	357.86M	552.91M	450.34M
Balance Sheet
Total Assets	0.00	15.88B	15.35B	12.17B	8.75B	5.79B
Cash, Cash Equivalents and Short-Term Investments	2.61B	3.05B	3.65B	1.60B	646.67M	512.72M
Total Debt	0.00	1.02B	1.05B	2.20B	713.16M	161.04M
Total Liabilities	-9.65B	6.23B	6.89B	8.29B	5.29B	2.87B
Stockholders Equity	9.65B	9.58B	8.40B	3.81B	3.40B	2.85B
Cash Flow
Free Cash Flow	0.00	373.04M	640.89M	632.26M	175.65M	1.24B
Operating Cash Flow	0.00	508.36M	1.03B	1.15B	310.69M	1.28B
Investing Cash Flow	0.00	185.54M	-3.56B	-1.53B	-471.55M	-165.48M
Financing Cash Flow	0.00	-345.08M	2.23B	955.81M	287.89M	-846.63M

Updater Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 183.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UDS, the sentiment is Negative. The current price of 183.15 is above the 20-day moving average (MA) of 158.39, above the 50-day MA of 168.44, and below the 200-day MA of 234.84, indicating a neutral trend. The MACD of -1.68 indicates Negative momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 45.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UDS.

Updater Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACCELYA	75 Outperform	₹17.42B	16.17	―	6.93%	5.26%	33.11%
EXPLEOSOL	73 Outperform	₹12.18B	11.44	―	4.95%	3.80%	-4.66%
UDS	63 Neutral	₹10.33B	11.86	―	―	8.98%	13.54%
MAHLOG	60 Neutral	₹40.30B	-129.80	―	0.69%	11.82%	28.42%
SPMLINFRA	58 Neutral	₹13.08B	22.05	―	―	-35.16%	115.70%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Updater Services Limited Corporate Events

Updater Services Releases Investor Presentation on Q3 and Nine-Month FY2025 Results

Updater Services Limited has announced that its Board of Directors has approved the standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2025. In conjunction with this, the company has released an investor presentation detailing these financial results, providing the market and stakeholders with updated financial information in line with regulatory disclosure requirements, reinforcing its transparency and engagement with investors.

Updater Services Subsidiary Denave Names Sunil Munshi as New CEO in Planned Succession Move

Updater Services Limited has announced a leadership transition at its material subsidiary Denave India Private Limited, with the board noting the appointment of industry veteran Sunil Munshi as Chief Executive Officer effective from the close of business on 31 March 2026, following the resignation of current CEO Snehashish Bhattacharjee. The company signalled that Munshi’s nearly three decades of experience and existing familiarity with the organisation form part of Denave’s planned succession strategy, and the board expects his elevation to reinforce the subsidiary’s strategic direction and growth trajectory, indicating a continuity-focused approach likely aimed at maintaining momentum in its business services operations.

Updater Services Wins Appeal as GST Demand of Rs 4.69 Crore Set Aside

Updater Services Limited has informed the stock exchanges that the Joint Commissioner (St), Appeals, Chennai has passed an order dated 3 February 2026 dropping an earlier demand raised by the GST Department. Following submissions and documentary evidence furnished during the appellate proceedings, the authority has set aside in full a GST demand of Rs 4.69 crore, leaving the company with no resulting tax liability; this outcome removes a potential financial and operational overhang for the firm and clarifies its position on the disputed tax matter for investors and other stakeholders.

Updater Services Challenges Rs 65 Lakh CGST Demand, Sees No Material Financial Hit

Updater Services Limited has disclosed that it has received an order from the Office of the Commercial Tax Officer in Chennai under Section 74 of the CGST Act, 2017, demanding Rs 65.39 lakh relating to input tax credit reversal on exempt supplies, sundry creditors and expenses payable under reverse charge mechanism. The company contends that the order was issued without due consideration of its earlier response to the notice, is evaluating legal remedies including a writ or appeal before the appellate authority, and maintains that, based on its assessment, the order lacks merit and is not expected to have any material financial impact on its operations.

Updater Services Faces CGST Demand Order, Expects No Material Financial Impact

Updater Services Limited has disclosed that it received an order from the Office of the Deputy Commissioner, Chennai, under Section 73 of the CGST Act, 2017, demanding Rs 11,06,850, primarily on account of disallowed input tax credit linked to return defaulters and non-payers. The company contends that the order was issued without due consideration of its earlier response, is exploring legal remedies including a writ or appeal before the appellate authority, and expects no material financial impact on its operations from this demand, signalling that stakeholders are unlikely to see a significant hit to earnings or cash flows from this tax dispute.