1. At a Glance
Netlink Solutions is a ₹44 Cr microcap that pretends to be a tech company, but actually makes money from investing surplus funds. It dabbles in website design, SEO, and event management, but its revenue from core ops is nearly zero. Almost all profits come from “Other Income” (read: stock market investments). So yes — the company is basically a hobby project with a demat account.
2. Introduction with Hook
Remember that one friend who “runs a startup” but actually just day-trades on Zerodha from his bedroom? That’s Netlink Solutions. Formed in 1984, it went from being a media player to a tech dabbler to now a stock market investor with a side hustle in SEO. And yet — the stock is up 63% CAGR in 5 years. Kaise? Read on.
3. Business Model (WTF Do They Even Do?)
Brace yourself. Their official operations include:
- 💻 Website development, SEO, domain booking
- 📦 Event planning & exhibition management
- 💰 Investing in equity markets
But here’s the plot twist:
Sales (TTM): ₹15 lakh
Other Income (TTM): ₹9.05 Cr
They should rename the company to Netlong Holdings Ltd 🐂📈
4. Financials Overview – Profit, Margins, ROE, Growth
Despite being a microcap zombie:
- 5-Year Profit CAGR: 31%
- ROE: 19.3%
- ROCE: 25%
- FY25 Net Profit: ₹5.4 Cr on total sales of ₹0.25 Cr 😬
How? All thanks to portfolio gains — mostly fair value gains from equity holdings.
But operationally?
OPM in Jun 2025 = -2900%
(Matlab losses 29x the revenue 😵)
5. Valuation – Is It Cheap, Meh, or Crack?
- Current Price: ₹173
- P/E (TTM): 8.1x
- Book Value: ₹120 ⇒ P/B ~1.4x
- Market Cap: ₹43.7 Cr
- Fair Value Range (based on 10–12x normalized EPS of ₹20):
➡️ ₹200–₹240
Cheap, but again — this isn’t a business… it’s a portfolio wrapped in a website template.
6. What’s Cooking – News, Triggers, Drama
- Latest Q1FY26 Profit: ₹1.74 Cr (flat YoY, but better than previous 2 quarters’ losses)
- Promoter holding fell from 65.96% → 54.65% in 2 quarters
- Still no dividend — despite being debt-free and cash-positive
- Massive surge in “Other Income” from listed equity investments — potentially cyclical
One trigger could be if they pivot into a formal NBFC structure or announce dividend policy.
7. Balance Sheet – How Much Debt, How Many Dreams?
- 🧾 Debt: ₹0
- 🏦 Reserves: ₹27.8 Cr
- 💼 Investments: ₹18.5 Cr
- 📉 Fixed assets: Barely ₹0.4 Cr
In short: all cash, no operations. It’s like a shell company that’s legal.
8. Cash Flow – Sab Number Game Hai
- Cash from Ops FY25: ₹1.53 Cr
- Cash from Investments: ₹1.99 Cr
- Cash Flow is erratic, due to market-dependent income
- No capex or debt movement at all — suggests minimal reinvestment
Also, how are they running a “tech business” with ₹0.01 Cr sales per quarter?
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 25% ✅ |
| ROE | 19.3% ✅ |
| OPM (TTM) | -1266% 😬 |
| Working Capital Days | 3,752 😵 |
| Debt/Equity | 0.0 ✅ |
| Tax Rate | ~20% ✅ |
Honestly, the profitability ratios are misleading — because earnings are purely non-operating.
10. P&L Breakdown – Show Me the Money
| FY | Sales | Other Income | PAT |
|---|---|---|---|
| FY23 | ₹2.09 Cr | ₹5.10 Cr | ₹4.77 Cr |
| FY24 | ₹1.96 Cr | ₹10.55 Cr | ₹9.20 Cr |
| FY25 | ₹0.25 Cr | ₹9.11 Cr | ₹5.35 Cr |
P&L looks juicy at first — until you realize 96%+ revenue is from Other Income 🤯
11. Peer Comparison – Who Else in the Game?
| Company | Sales | PAT | P/E | OPM |
|---|---|---|---|---|
| Netlink Solutions | ₹0.25 Cr | ₹5.35 Cr | 8.1x | -1266% |
| Blue Cloud Software | ₹796 Cr | ₹44 Cr | 34x | 8.8% |
| Tanla Platforms | ₹4,028 Cr | ₹507 Cr | 17x | 17.2% |
| Quick Heal | ₹280 Cr | -₹2.36 Cr | 405x | Neg. |
Conclusion: This is not even a software company anymore — just a microcap with mutual fund tendencies.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 54.65% (↓ from 65.96%)
- Public Holding: 45.35%
- 6,000+ shareholders (somehow)
- No FII/DII activity
- Promoters need to clarify why they’re exiting
13. EduInvesting Verdict™
“Yeh tech nahi, trading company hai, bas SEBI ko shayad bataya nahi.”
Netlink Solutions isn’t fooling anyone who knows how to read financials. While technically debt-free and profitable, the entire model rests on the performance of its equity investments, not actual business operations. Think of it as a mini version of Berkshire Hathaway — if Buffett only made landing pages for ₹10,000.
Until they start doing actual business (or become a legit investment company), this is just a listed shell with a functioning demat.
🧮 Tags: Netlink Solutions India, microcap stock, shell company, SEBI, smallcap, other income, investment company, financial analysis, screener, exhibition management, SEO company, EduInvesting
✍️ Written by Prashant | 📅 July 10, 2025
