Netweb Technologies India Ltd.
ISIN: INE0NT901020 • Market Cap: ₹28,824 Cr
The 5-Pillar Quality Audit for Netweb Technologies India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (13.3%), Return on Capital Employed (29.4%), and equity compounding (21.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (82.4%) and 3Y PAT CAGR (77.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 110.58 vs PEG of 4.14 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 67.0%, backed by 15.2% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 29.4%)
Netweb Technologies India Ltd. generates exceptional return on capital employed of 29.4%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 21.6%)
Shareholder equity compounds at a healthy 21.6%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 82.4%)
Revenue has expanded at 82.4% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 77.1%)
Net earnings have compounded at 77.1% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 110.58)
A steep valuation multiple of 110.58 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Information Technology)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Information Technology space.
Quantitative Strategy Eligibility
Checking NETWEB against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 77/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Information Technology Sector Peer Comparison
Compare NETWEB directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Netweb Technologies India Ltd. (NETWEB)Current | 77/100 | ₹28,824 Cr | 110.58 | 29.4% | 0.00 | — |
| Tata Consultancy Services Ltd. (TCS) | 79/100 | ₹8.27 Lakh Cr | 16.62 | 60.9% | 0.00 | View |
| Infosys Ltd. (INFY) | 78/100 | ₹4.53 Lakh Cr | 14.97 | 41.1% | 0.00 | View |
| HCL Technologies Ltd. (HCLTECH) | 75/100 | ₹3.59 Lakh Cr | 20.60 | 28.7% | 0.00 | View |
| Wipro Ltd. (WIPRO) | 71/100 | ₹1.78 Lakh Cr | 13.45 | 18.7% | 0.19 | View |
| Tech Mahindra Ltd. (TECHM) | 75/100 | ₹1.55 Lakh Cr | 30.20 | 22.0% | 0.00 | View |
Frequently Asked Questions: Netweb Technologies India Ltd.
Q:What is the 5-Pillar Fundamental Score for Netweb Technologies India Ltd. (NETWEB)?
Netweb Technologies India Ltd. has a RupeeTools Fundamental Score of 77/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (82/100), Financial Health (87/100), Growth (99/100), Valuation (18/100), and Ownership Quality (82/100).
Q:Is NETWEB fundamentally strong for long-term investment?
Yes, NETWEB exhibits solid fundamental strength with a 77/100 score, driven by a return on equity of 21.6% and a debt-to-equity ratio of 0.00.
Q:Does NETWEB pass the Coffee Can Investing filter?
Yes! NETWEB satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does NETWEB compare against other Information Technology peers?
Within India's Information Technology sector, NETWEB trades at a P/E of 110.58 and generates an ROCE of 29.4%. Compare its 5-Pillar score of 77/100 against top sector peers like Tata Consultancy Services Ltd. (79/100), Infosys Ltd. (78/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.