“Cybersecurity stock with AI buzzwords, Spain dreams… and debtor days longer than a family WhatsApp group debate”
🧠 At a Glance:
Founded in 2013 and listed recently, Sattrix provides cybersecurity services to enterprises in India, the UAE, and the US. Their pitch? “End-to-end security solutions with AI integration.” Their results? Surprisingly solid… but not quite hacker-proof.
FY25 saw a 124% jump in profits, new international JVs, and ₹6.8 Cr IPO equity expansion — all in one fiscal. But the stock is already at 31x earnings, has 177 days in debtors, and is yet to translate “cybersecurity” into “hyperprofitability.”
🔍 1. WTF Do They Even Do?
Sattrix provides:
- 🛡️ Cybersecurity Solutions – Firewall, cloud security, data protection
- ☁️ Cloud Infra & Migration – AWS/Azure implementation
- 🤝 Managed Security Services – SOC-as-a-Service (Security Operations Centre)
- 🌍 Clients in India, UAE, and USA
They’re not selling software or licenses (yet), mostly services. Think of it as a security guard for your cloud… but wearing a hoodie.
📊 2. Financials – Profit Boost or Buzzword Inflation?
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | ROE % |
|---|---|---|---|---|
| FY22 | 22.9 | 2.1 | 11.6% | — |
| FY23 | 35.1 | 3.8 | 14.0% | — |
| FY24 | 40.4 | 1.8 | 6.2% | — |
| FY25 | 44.6 | 4.05 | 15.4% | 16.2% ✅ |
💡 Revenue is up, margins are up, net profit doubled – but working capital stress is also up.
💸 3. Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹188
- EPS FY25: ₹5.96
- P/E: 31.6x
- Book Value: ₹53.7
- P/B: 3.5x
- Market Cap: ₹128 Cr
🎯 Fair Value Range (based on 20–25x P/E for small profitable IT services):
₹120 – ₹150
The market has already priced in “AI + Cyber + Global = Multibagger.” But bro, it’s mostly India services + a dream.
🧯 4. What’s Cooking – Contracts, JV, AI Buzz
- 🔐 ₹3.46 Cr 3-year contract with Altisource starting June 2025
- 🏦 ₹2.13 Cr order from CSB Bank for 12 months
- 🇪🇸 JV in Spain with Strolling Digital (75:25) to expand in EU
- 📈 FY25 PAT +124% YoY, EBITDA +111%
- 🧠 PR buzz around AI-driven threat detection (yet to reflect in margins)
Sattrix is doing all the right PR moves. The question is: are they growing sustainably, or just “auditing creatively”?
🧾 5. Balance Sheet – Solid or Silicon Mirage?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net Worth (Cr) | 11.8 | 14.1 | 36.5 |
| Debt (Cr) | 1.94 | 0.24 | 1.75 |
| Cash (Est.) | 5.2 | 4.9 | ~4.9 |
| Fixed Assets | 1.3 | 3.5 | 13.4 |
📉 Jump in fixed assets = capex ahead of expansion
📈 Equity infusion from IPO is visible (₹6.8 Cr to ₹36.5 Cr NW)
💰 6. Cash Flow – Cyber-Positive or Data-Drought?
| Year | CFO (₹ Cr) | Verdict |
|---|---|---|
| FY23 | ₹3.55 | Steady |
| FY24 | ₹11.26 | Excellent |
| FY25 | -₹7.46 | Woah, what? 🔥 |
Massive negative operating cash flow in FY25 after strong EBITDA. Likely due to trade receivables → enter 177 debtor days.
📈 7. Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROE | 16.2% | Strong ✅ |
| ROCE | 23.7% | Efficient 💪 |
| OPM | 15.4% | Improved 👍 |
| D/E | 0.05x | Comfortable |
| Debtor Days | 177 | High ❌ |
This is your typical “B2B + IT + delayed payment” problem. Great profits on paper, tight cash in practice.
📊 8. P&L Breakdown – Show Me the Cyber Money
- FY25 Revenue: ₹44.6 Cr
- EBITDA: ₹7.33 Cr
- PAT: ₹4.05 Cr
- EPS: ₹5.96
- Zero dividend (bootstrapping mode)
Service-led model with some licensing revenue. 319% QoQ PAT spike in March hints at backend revenue booking.
🤼 9. Peer Comparison – Big Fish in SME Tank?
| Company | P/E | ROE | MCap (₹ Cr) |
|---|---|---|---|
| Netweb Tech | 89.6 | 19.3% | 10,251 |
| Cyient | 23.6 | 12.8% | 14,476 |
| Affle | 73.0 | 14.0% | 27,888 |
| Sattrix | 31.6 | 16.2% | 128 |
Among SME players, Sattrix is reasonably valued — especially when compared to frothy AI stocks. But its moat is still service-led.
🧾 10. Misc – Promoters, Float, and Floaties
- 👑 Promoter Holding: 73.5% (very stable)
- 🌍 FIIs + DIIs: combined ~0.2%
- 🧑💼 Public Holding: 26.3%
- 🧻 Shareholders: 662 (still early-stage float)
- 🧼 Clean audit opinion, no red flags in governance so far
✅ EduInvesting Verdict™
Sattrix: Not just buzzwords and bash scripts – there’s a real business underneath.
If it were listed on Nasdaq, they’d call it a “cybersecurity SaaS microcap with cloud-native AI defense.” But it’s still a bootstrapped Indian IT services SME with B2B receivables and founder grit.
Definitely not a scam.
Maybe not a rocket.
But possibly a steady cruiser — if they convert their Spain JV and bank contracts into recurring cash.
🎯 Fair Value Range: ₹120 – ₹150 (current price is on the upper edge of optimism)
Not a buy/sell reco. We’re not hackers. Just EduInvestors.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Sattrix, SME cybersecurity stocks, AI-based IT companies, IPO 2024, Spanish JV, Altisource contract, BSE SME tech stocks, EduInvesting, stock analysis, cloud security startups India
