1. At a Glance
Freshly IPO’d in May 2025, Unified Data-Tech Solutions Ltd (UDTS) is your friendly neighbourhood IT plumber – setting up data centers, securing networks, and selling hybrid cloud dreams. It’s almost debt-free, has ROE north of 40%, and OPM at 16%. Basically, for an SME IT firm, it looks like Virat Kohli in a gully cricket match. But wait – 79% of revenue comes from BFSI, and top 5 clients = 62%. One sneeze from HDFC Bank IT head, and this company will be coughing.
2. Introduction
If you thought all IT companies either made PowerPoints (Infosys) or sold coding coolies (TCS), Unified Data is here to remind you: “Bhai, someone has to install the servers too.”
Founded in 2010 in Mumbai, UDTS carved out a niche insystem integration. While the big IT boys went after billion-dollar outsourcing contracts, UDTS quietly sold firewalls, VMware setups, and disaster recovery solutions to BFSI clients. By FY25, it touched₹220 Cr revenue and ₹34 Cr PAT– not bad for a firm still listed on the SME exchange.
The market gave it a valuation of₹663 Cr (P/E ~19.5). Compared to Cyient (P/E ~21) and LTTS (P/E ~35), that looks “reasonable.” But remember: SME IPOs are like Bollywood newcomers – some become Shah Rukh Khan, most fade after one Friday.
3. Business Model (WTF Do They Even Do?)
UDTS =system integration + managed services + resale of OEM gear.
Product Offerings:
- Data Centers:servers, storage, networking, security
- Virtualization & Private Cloud:VMware, Hyper-V, OpenStack
- Cybersecurity:firewalls, VPNs, endpoint security
- Hybrid Cloud & Secure App Delivery:load balancing, app firewalls
Services:
- Advisory (tell you to upgrade)
- Integration (sell and install hardware/software)
- Managed Ops (keep things running)
Revenue Mix FY24:
- Products:75.9% (read: OEM resale margin business)
- Services:23.8% (actual IP, better margins)
- Rebates:0.3% (OEM kickbacks)
Dependency? 80% BFSI, 5 clients = 79% revenue. That’s like eating only Maggi every day – fine until Nestle raises prices.
4. Financials Overview
| Metric | Latest Qtr (Mar’25) | YoY Qtr (Mar’24) | Prev Qtr (Sep’24) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 114 | 106 | 106 | 7.5% | 7.5% |
| EBITDA (₹ Cr) | 15 | 21 | 21 | -28.5% | -28.5% |
| PAT (₹ Cr) | 12.1 | 22 | 22 | -45.0% | -45.0% |
| EPS (₹) | 6.02 | 10.9 | 10.9 | -44.8% | -44.8% |
Annualised EPS = ₹17CMP ₹330 →P/E ~19.4x(okayish, given industry PE 30.9).
Commentary: Profits shrank QoQ because margins compressed from 20% to 13%. Maybe they discounted too much or clients squeezed them harder than a Mumbai local at 9 AM.
👉 Question: Would you trust a BFSI-heavy IT integrator when Indian banks are already cutting tech budgets?
5. Valuation (Fair Value Range)
(a) P/E Method
EPS: ₹17, Industry PE ~31FV = ₹17 × 20–30 =₹340 – ₹510
(b) EV/EBITDA
EV ~₹662 Cr, EBITDA FY25 ~₹45 Cr → EV/EBITDA ~14.7xSector average 12–18x → FV =₹540 – ₹810 Cr→ Per share =₹270 – ₹405
(c) DCF (optimistic BFSI growth case)
Assume 20% PAT CAGR for 5 years, 12% discount, 3% terminal → FV ~₹350 – ₹450
🎯Fair Value Range (Educational Only): ₹270 – ₹500(Disclaimer: Not investment advice.)
6. What’s Cooking – News, Triggers, Drama
- IPO (May 2025):₹144.5 Cr OFS. Promoters offloaded, public got served.
- New CTO (Aug 2025):25 years experience guy parachuted in. Good sign – unless he’s here just to polish PowerPoints.
- Ahmedabad Office (Jun 2025):Expanding footprint.
