š» At a Glance
Kellton Tech Solutions Ltd is a smallcap IT services firm that got slapped with a -ā¹176 Crmystery lossin FY23 (remember that āother incomeā nuke?). But cut to FY25: margins are back, profit is ā¹80 Cr+, stock is rising, and management just approved a ā¹69 Cr preferential issue. With a P/E of 16, an ROCE of 17%, and a 1:5 stock split in the pipeline ā is Kellton 2.0 the real digital transformation? Or just a bug fix before another crash?
1. š£ Introduction with Hook
Remember that one college friend who vanished for 3 years, then returned as a fitness influencer? Kellton Tech is that guy.
Back in FY23, investors had mentally written it off after aā¹176 Cr āOther Incomeā hit(still unexplained in human language). But now?
- Profit: Back to ā¹80 Cr+
- OPM: Recovered to 12%
- ROE: 16.3%
- Promoters? Issuingwarrants worth ā¹69.3 Cr
- Bonus? Nope.Stock split incoming.
š Is this a real turnaround? Or is it just a PPT-level
facelift?
2. šØāš» Business Model: WTF Do They Even Do?
Kellton offersdigital transformation + IT consultingacross:
- Agile software development
- Digital commerce & marketing
- ERP implementation (SAP, Oracle)
- Integration (Mulesoft, API-first solutions)
- Cloud, Data & AI services
- Outsourced product development
- Testing, QA, and support
š§ Clients span:
- BFSI
- Retail & eCommerce
- Energy
- Public Sector (incl. US Gov contracts)
Theyāre based in Hyderabad but generate>70% revenue from US & EU. Truly a āDollar-Dollar Babuā.
3. š Financials Overview ā Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (ā¹ Cr) | 776 | 843 | 917 | 983 | 1,098 |
| Net Profit (ā¹ Cr) | 71 | 70 | -127 ā ļø | 64 | 80 |
| EBITDA Margin | 14% | 12% | 10% | 11% | 12% |
| ROE | 7.3% | 7.3% | -27% | 16% | 16.3% |
| ROCE | 18% | 17% | 14% | 16% | 17.4% |
ā FY25 showsclean reboundfrom FY23 chaosā But sales growth is painfully slow: 3Y CAGR ā 9%
4. šø Valuation ā Is It Cheap, Meh, or Crack?
- CMP: ā¹132
- P/E: 16.1
- P/B
