At a Glance
Unified Data-Tech is an SME-listed IT infra and cybersecurity firm that’s posting numbers big boys would envy: ROCE 55%, ROE 42%, debt-free balance sheet, and 36% PAT growth in FY25. But… promoters dumped nearly 40% stake in one quarter. Hmm. At ₹302/share and ₹608 Cr market cap, this is either a future midcap IT story — or a frothy exit plan.
1. 🚀 Introduction with Hook
When’s the last time an SME IT company posted:
- 55% ROCE,
- 36% YoY PAT growth, and
- 0 debt?
Unified Data-Tech isn’t your typical back-office BPO. They do data centers, cybersecurity, virtualization, and app delivery — basically, the backend for India’s digital ambitions. But with a suspicious 39% promoter sell-off recently, investors are left asking:
“High margin? Or high hopes?”
2. 🧑💻 Business Model – WTF Do They Even Do?
Here’s the menu:
🖥️ System Integration & Infra
- Data centers
- Server storage
- Virtualization
- IT infra setups for enterprises & govt
🛡️ Cybersecurity & Networking
- Secure application delivery
- Endpoint & network security
📡 Turnkey IT Services
- Managed services
- On-premises + cloud integrations
💼 Clients
- BFSI, government, corporates
Basically: Think Mini Netweb + SecureTech + L&T Infotech… but still in SME stadium.
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue | ₹93 Cr | ₹110 Cr | ₹260 Cr | ₹220 Cr |
| Net Profit | ₹10 Cr | ₹10 Cr | ₹25 Cr | ₹34 Cr |
| OPM | 12% | 11% | 11% | 16% |
| ROE | 42% | 41.6% | 42.1% | 42.1% |
| ROCE | – | 40% | 65% | 55.2% |
✅ Margins expanded nicely in FY25
✅ PAT growth 36%
🔻 Revenue dipped slightly from ₹260 Cr → ₹220 Cr
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| Market Cap | ₹608 Cr |
| P/E | 17.8x |
| ROE | 42.1% |
| Book Value | NA (likely ~₹155–₹165) |
| CMP | ₹302 |
🧮 Fair Value Range = ₹340 – ₹450
Assuming:
- FY26E EPS = ₹21–₹25
- P/E of 16–18 (reasonable for high-ROE IT SME)
📉 So… not crack. In fact, possibly undervalued if growth sustains and dilution stops.
5. 🍿 What’s Cooking – News, Triggers, Drama
📍 New Office in Ahmedabad
- Expansion into Tier-1 IT zones = scale-up signal
📢 FY25 Results
- PAT up 36%
- EBITDA margins up from 11% to 16%
🚨 Promoter Holding Down 39.6% QoQ
- From >99% to 60.4% in just one quarter
- Exit strategy? Or regulatory unlocking?
✅ Internal Auditor Appointed — governance positive
🚫 No dividend yet
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Snapshot |
|---|
| Equity Capital |
| Reserves |
| Borrowings |
| Total Liabilities |
| Fixed Assets |
| Investments |
| Other Assets |
💰 Cash-rich & clean
🧾 High “Investments” = possibly IPO proceeds or treasury parking
7. 💵 Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹23 Cr | ₹-1 Cr | ₹0 | ₹22 Cr |
| FY24 | ₹10 Cr | ₹-29 Cr | ₹0 | ₹-19 Cr |
| FY25 | ₹35 Cr | ₹-38 Cr | ₹0 | ₹-3 Cr |
🟢 Strong CFO = healthy biz
🔻 High investing = building reserves? Acquisitions?
8. ⚙️ Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 42.1% |
| ROCE | 55.2% |
| Debt | 0 |
| Cash Conversion Cycle | 34 days |
| Working Capital Days | 100 |
🧠 ROE + ROCE both elite
📦 Working capital stretch = watchlist
📉 CCC still manageable
9. 📉 P&L Breakdown – Show Me the Money
| Year | Revenue | OPM | PAT | EPS |
|---|---|---|---|---|
| FY23 | ₹110 Cr | 11% | ₹10 Cr | ₹20,800 (!) |
| FY24 | ₹260 Cr | 11% | ₹25 Cr | ₹50,260 (!) |
| FY25 | ₹220 Cr | 16% | ₹34 Cr | ₹16.96 (post-split/restructure EPS) |
🧮 EPS normalized post listing/dilution
📈 Margins up, PAT up
📉 Revenue dropped slightly — could be lumpy contracts
10. 🏁 Peer Comparison – Who Else in the Game?
| Peer | P/E | ROE | OPM | Rev |
|---|---|---|---|---|
| Netweb | 89x | 24% | 13.9% | ₹1149 Cr |
| Inventurus | 56x | 33% | 28.9% | ₹2664 Cr |
| Tata Tech | 42x | 20% | 18% | ₹5168 Cr |
| Unified Data | 17.8x | 42% | 16% | ₹220 Cr |
🔥 Highest ROE
🔥 Lowest P/E
🧱 Smallest in size — but scaling fast
11. 👥 Miscellaneous – Shareholding, Promoters
| Category | % Holding |
|---|---|
| Promoters | 60.39% ↓ |
| FIIs | 3.21% |
| DIIs | 9.77% |
| Public | 26.63% |
| No. of Shareholders | 5,838 |
🔻 Promoter dump of ~39.6% in 1 quarter is concerning
✅ FIIs/DIIs stepped in — rare for SME
⚠️ No pledging, but one to monitor
12. 🧠 EduInvesting Verdict™
“If TCS and Netweb had a baby — and then that baby listed on BSE SME.”
Unified Data is a rare SME IT stock with:
✅ High ROE
✅ Scalable margins
✅ Debt-free structure
✅ Client stickiness
✅ Real business, not just buzzwords
But… promoter dilution spooks us.
Still, if you’re okay with short-term volatility and low float, this one’s got multi-quarter compounding potential.
🎯 Fair Value Range: ₹340 – ₹450
(Assuming 20% PAT CAGR and re-rating to ~20–22x P/E)
✍️ Written by Prashant | 📅 08 July 2025
Tags: Unified Data Tech, SME IPOs, high ROE stocks, IT infra, cybersecurity, Netweb peers, SME tech stock analysis, EduInvesting
