Indian Infotech and Software Ltd is Rated Strong Sell

Current Rating and Its Significance

The Strong Sell rating assigned to Indian Infotech and Software Ltd indicates a cautious stance for investors. This rating suggests that the stock is expected to underperform the broader market and carries significant risks. Investors are advised to consider this recommendation seriously, especially given the company’s recent financial trends and valuation concerns. The rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals.

Here’s How the Stock Looks Today

As of 06 January 2026, Indian Infotech and Software Ltd is classified as a microcap within the Non Banking Financial Company (NBFC) sector. The company’s Mojo Score currently stands at 9.0, reflecting a marked decline from its previous score of 36. This significant drop in score underpins the Strong Sell rating and highlights the challenges the company faces.

Quality Assessment

The company’s quality grade is assessed as below average. This is primarily due to weak long-term fundamental strength. Over the past five years, the company has experienced a staggering negative compound annual growth rate (CAGR) of -235.10% in operating profits. Such a steep decline signals deteriorating operational efficiency and profitability. Additionally, the company’s ability to service its debt is poor, with an average EBIT to interest ratio of -1.56, indicating that earnings before interest and taxes are insufficient to cover interest expenses. Return on equity (ROE) is also minimal, averaging just 0.21%, which suggests very low profitability relative to shareholders’ funds.

Valuation Considerations

Indian Infotech and Software Ltd is currently rated as risky from a valuation perspective. The stock trades at levels that are unfavourable compared to its historical averages. Negative EBITDA further compounds valuation concerns, signalling that the company is not generating sufficient earnings before interest, taxes, depreciation, and amortisation. Over the past year, the stock has delivered a return of -42.97%, reflecting investor apprehension and weak market sentiment. This poor performance is coupled with a dramatic fall in profits by -555.9%, underscoring the company’s financial distress.

Financial Trend Analysis

The financial grade for Indian Infotech and Software Ltd is negative, reflecting ongoing challenges in revenue and profitability. The latest nine-month results ending September 2025 show net sales at ₹26.46 crores, representing a decline of -22.15%. Profit after tax (PAT) for the same period is negative at ₹-0.09 crores, also down by -22.15%. These figures highlight the company’s struggle to maintain growth and profitability in a competitive environment. The negative EBITDA and shrinking sales base further reinforce the negative financial trend.

Technical Outlook

From a technical perspective, the stock is mildly bearish. Despite a modest positive day change of +1.39% and a one-week gain of +4.29%, the medium to long-term price trend remains weak. Over the past three months, the stock has declined by -17.05%, and over six months, it has fallen by -29.13%. Year-to-date returns are positive at +4.29%, but the one-year return remains deeply negative at -42.97%. This mixed technical picture suggests short-term volatility but a prevailing downward momentum.

What This Means for Investors

The Strong Sell rating on Indian Infotech and Software Ltd signals that investors should exercise caution. The company’s weak fundamentals, risky valuation, negative financial trends, and bearish technical indicators collectively point to significant downside risks. Investors looking for stable or growth-oriented NBFC stocks may find better opportunities elsewhere. For those holding the stock, it is prudent to reassess their exposure and consider risk mitigation strategies.

Summary of Key Metrics as of 06 January 2026

To summarise, the stock’s key performance indicators as of today include:

• Mojo Score: 9.0 (Strong Sell Grade)


• Quality Grade: Below Average


• Valuation Grade: Risky


• Financial Grade: Negative


• Technical Grade: Mildly Bearish


• One-year stock return: -42.97%


• Operating profit CAGR (5 years): -235.10%


• EBIT to Interest ratio (average): -1.56


• Return on Equity (average): 0.21%


• Net Sales (9M Sep 2025): ₹26.46 crores, down 22.15%


• PAT (9M Sep 2025): ₹-0.09 crores, down 22.15%

These metrics collectively justify the current Strong Sell rating and highlight the considerable challenges facing Indian Infotech and Software Ltd.

Investor Takeaway

Investors should interpret the Strong Sell rating as a clear signal to approach Indian Infotech and Software Ltd with caution. The company’s deteriorating fundamentals and financial health, combined with unfavourable valuation and technical trends, suggest limited upside potential in the near term. Those considering entry should weigh these risks carefully against their investment objectives and risk tolerance.

MarketsMOJO’s rating system aims to provide a holistic view of a stock’s prospects by integrating quality, valuation, financial trends, and technical analysis. For Indian Infotech and Software Ltd, the convergence of negative signals across these parameters underscores the rationale behind the Strong Sell recommendation.

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