Rating Overview and Context
On 27 Nov 2025, MarketsMOJO revised InfoBeans Technologies Ltd’s rating from 'Hold' to 'Buy', accompanied by an increase in its Mojo Score from 60 to 71. This shift reflects a more favourable outlook on the company’s prospects based on a comprehensive evaluation of its quality, valuation, financial trends, and technical indicators. While the rating change date is important for historical context, investors should focus on the current data as of 24 February 2026 to understand the stock’s present-day investment potential.
Here’s How InfoBeans Technologies Ltd Looks Today
As of 24 February 2026, InfoBeans Technologies Ltd demonstrates robust performance across multiple dimensions. The company operates within the Computers - Software & Consulting sector and is classified as a microcap stock. Despite its smaller market capitalisation, the stock has delivered exceptional returns and shows promising financial health.
Quality Assessment
The company holds an average quality grade, indicating a stable operational foundation. Notably, InfoBeans maintains a low debt-to-equity ratio, effectively zero, which minimises financial risk and enhances balance sheet strength. This conservative capital structure supports sustainable growth and reduces vulnerability to market fluctuations.
Valuation Considerations
Currently, InfoBeans Technologies Ltd is considered expensive based on valuation metrics. While this may suggest a premium price relative to earnings or book value, it is important to weigh this against the company’s growth trajectory and profitability. Investors should recognise that a higher valuation can be justified by strong fundamentals and future earnings potential, which InfoBeans appears to possess.
Financial Trend and Profitability
The financial grade for InfoBeans is very positive, reflecting impressive growth and profitability trends. The latest data shows operating profit growing at an annualised rate of 31.50%, signalling efficient business expansion. Net profit has surged by 173.23%, underscoring the company’s ability to convert revenue into earnings effectively. The company has reported positive results for eight consecutive quarters, with profit before tax (PBT) excluding other income reaching ₹23.83 crores, a remarkable growth of 237.06%. Additionally, the return on capital employed (ROCE) stands at a healthy 22.48%, indicating strong capital efficiency.
Technical Analysis
From a technical perspective, InfoBeans Technologies Ltd is rated bullish. The stock price has shown significant momentum, with a 3-month gain of 62.73% and a one-year return of 158.41% as of 24 February 2026. Despite a minor one-day decline of 2.19%, the overall trend remains upward, supported by increasing institutional participation. Institutional investors have raised their stake by 0.6% over the previous quarter, now holding 1.51% of the company’s shares. This growing interest from sophisticated investors often signals confidence in the company’s prospects and can provide additional price support.
Market Performance and Returns
InfoBeans Technologies Ltd has outperformed broader market indices such as the BSE500 over multiple time frames, including the last three years, one year, and three months. The stock’s year-to-date return stands at 5.25%, with a six-month gain of 27.49%. These figures highlight the company’s ability to generate market-beating returns, making it an attractive option for investors seeking growth in the software and consulting sector.
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Implications of the Buy Rating for Investors
A 'Buy' rating from MarketsMOJO suggests that InfoBeans Technologies Ltd is expected to deliver favourable returns relative to its peers and the broader market. This recommendation is grounded in the company’s strong financial health, positive earnings momentum, and technical strength. Investors considering this stock should view it as a growth-oriented opportunity, albeit with the understanding that its valuation is on the higher side. The low leverage and consistent profitability provide a cushion against volatility, making it suitable for investors with a moderate to high risk appetite seeking exposure to the software and consulting sector.
Sector and Market Position
Operating in the dynamic Computers - Software & Consulting sector, InfoBeans Technologies Ltd benefits from ongoing digital transformation trends and increasing demand for technology services. Its microcap status means it may offer higher growth potential compared to larger, more established companies, though with correspondingly higher volatility. The company’s ability to sustain growth and profitability in this competitive environment is a key factor supporting its current rating.
Summary
In summary, InfoBeans Technologies Ltd’s current 'Buy' rating reflects a balanced assessment of its quality, valuation, financial trends, and technical outlook. The company’s strong profit growth, low debt, and bullish price momentum underpin this positive stance. While valuation remains elevated, the stock’s market-beating returns and institutional interest reinforce its appeal. Investors should consider these factors alongside their individual risk tolerance and portfolio objectives when evaluating this opportunity.
Looking Ahead
As of 24 February 2026, InfoBeans Technologies Ltd remains well-positioned to capitalise on sector growth and deliver shareholder value. Continued monitoring of quarterly results, institutional activity, and market conditions will be essential for investors to stay informed about the stock’s evolving prospects.
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