1. At a Glance
Shradha AI Technologies Ltd is that one stock which looks like it attended an AI conference, bought a fancy name badge, and then quietly went back to selling software services and trading hardware—with margins that would make even SaaS founders blink twice. Market cap sits at ₹176 Cr, current price ₹28.9, and the stock has politely disappointed momentum chasers with -20% in 3 months and -38% over 1 year.
But scratch the surface and you’ll see a company doing ₹16.6 Cr in TTM sales, ₹9.84 Cr in PAT, and casually throwing around 60%+ operating margins like it’s normal grocery business behavior. ROCE stands at 17.4%, ROE at 13.3%, debt is basically pocket change (₹0.41 Cr), and dividends are flowing at a 2%+ yield.
Latest quarter? Sales ₹3.08 Cr, PAT ₹1.49 Cr, but YoY and QoQ both fell sharply. Cue the confusion. Is this a high-margin tech play, an other-income magician, or a capital allocator wearing an AI hoodie? That’s exactly what we’re unpacking.
2. Introduction – Welcome to the AI Rebrand Olympics
Shradha AI Technologies Ltd has been around since 1990. That alone tells you one thing: this company has survived floppy disks, dial-up internet, Y2K panic, dot-com crash, and still showed up in 2023 saying, “Boss, add AI to the name.”
Originally Shradha Industries Ltd, the October 2023 rebranding to Shradha AI Technologies Ltd was less about overnight transformation and more about aligning optics with what the company claims it’s building—software, platforms, and now Moodscope AI (we’ll get there).
Operationally, this is not a classic IT services sweatshop nor a pure product SaaS firm. It’s a hybrid creature:
- Trading of IT hardware (low drama, low growth)
- Software development & maintenance services (where margins live)
- Networking, systems integration, and IT consultancy
- Plus a dash
- of interest income and dividends doing the heavy lifting quietly
If you’re expecting a flashy AI revenue breakout in the P&L—calm down. This is still a small-cap cash compounding story, not a hype rocket.
3. Business Model – WTF Do They Even Do?
Let’s explain Shradha AI like you’d explain it to a smart investor who skipped the footnotes.
Segment 1: IT Hardware Trading
This is the bread-and-butter but not the buttercream.
- Computers, peripherals, networking gear
- Wholesale trading of computer parts
Margins here are thin. Think kirana store economics, not SaaS dreams.
Segment 2: Software Development & Services (66% of FY24 revenue)
Here’s where the company flips personalities.
- Customized software for SMEs
- Application development
- System integration
- Web & mobile portals
- E-commerce solutions
This segment is asset-light, manpower-efficient, and explains why OPM is chilling above 60%.
Segment 3: Networking, IT Security & Maintenance
Enterprise-focused:
- Telecommunication systems
- Network setup
- IT infrastructure solutions
- AMC-style contracts
Segment 4: Training & Consultancy
Smaller contributor, but high ROCE, low capital intensity.
In short: Trading pays the bills, software pays the dividends, and other income pads the margins. Simple, effective, slightly boring—and that’s not always a bad thing.
4. Financials Overview – Numbers That Raise Eyebrows
Quarterly Comparison
(Standalone, ₹ Cr)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 3.08 | 5.17 | 4.43 | -40.4% | -30.5% |
| EBITDA | 1.44 | 3.78 | 2.47 | -61.9% | -41.7% |
| PAT | 1.49 | 3.21 | 2.77 | -53.6% | -46.2% |
| EPS (₹) | 0.24 | 0.53 | 0.45 | -54.7% | -46.7% |
