ICDS Ltd. (ICDSLTD) AI Stock Analysis

ICDS Ltd.

(NSE:ICDSLTD)

Select Model

Rating:50Neutral

Price Target:INR 42.00▼(-0.26% Downside)

Action:reiterated

Date:10/02/26

The overall score is constrained by a very high P/E ratio and weak technical momentum. The company's core business is struggling with declining revenue and negative gross profit, making its current earnings quality poor. These significant risks are partially mitigated by a debt-free balance sheet and strong free cash flow generation, which provide a financial cushion. The stock's position below key short-term moving averages further dampens the near-term outlook.

Positive Factors

Very Low LeverageVery low leverage reduces interest burden and financial distress risk, giving ICDS greater flexibility to preserve capital or support investments. A debt-free position also improves resilience if earnings remain volatile, although it does not by itself ensure strong operating profitability.

Negative Factors

Revenue ContractionThe sharp FY2026 revenue decline, following earlier periods of strong growth, shows that ICDS lacks consistent top-line momentum. Persistent revenue volatility can weaken operating leverage, reduce the reliability of future earnings, and make capital allocation and growth planning more difficult.

ICDS Ltd. (ICDSLTD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 651.34M
Dividend Yield: ―
Average Volume (3M): 1,053
Price to Earnings (P/E): 98.0
Beta (1Y): 0.23
Revenue Growth: -46.20%
EPS Growth: -68.73%
Country: India
Employees: 14
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

ICDS Ltd. Business Overview & Revenue Model

Company Description

ICDS Limited operates in India, engaging in the buying and selling of shares, securities, mobile phones, and accessories. The company further diversifies its operations through the leasing of investment real estate and the promotion of various life a...

How the Company Makes Money

Revenue is generated primarily through (a) financial income and investment returns from its holdings (e.g., gains/losses on investments, dividends, interest, and other income associated with financial assets) and (b) results attributable to any opera...

ICDS Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is strong with virtually no debt and a healthy equity base (Score: 75), and cash flow generation is robust with near 100% free cash flow conversion (Score: 65). However, the income statement is weak, showing a 38% revenue decline and negative gross profit, with earnings reliant on non-operating items (Score: 30). The overall financial health is moderate, with balance sheet strength offsetting core operational weaknesses.

Income Statement

30Negative

Balance Sheet

75Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.02M	20.61M	38.68M	35.12M	22.59M	12.75M
Gross Profit	4.11M	11.22M	39.02M	30.14M	16.56M	7.96M
EBITDA	4.20M	8.73M	33.77M	27.99M	9.61M	63.39M
Net Income	491.00K	10.93M	14.03M	20.35M	3.81M	58.36M
Balance Sheet
Total Assets	284.48M	330.23M	321.95M	286.62M	268.32M	266.09M
Cash, Cash Equivalents and Short-Term Investments	106.15M	83.90M	69.45M	78.38M	80.08M	52.29M
Total Debt	2.29M	0	2.63M	3.59M	2.96M	9.26M
Total Liabilities	11.47M	30.58M	32.52M	11.23M	13.19M	13.95M
Stockholders Equity	273.01M	299.64M	289.43M	275.39M	255.13M	252.14M
Cash Flow
Free Cash Flow	3.66M	27.44M	9.53M	1.83M	63.56M	-8.35M
Operating Cash Flow	3.66M	28.02M	10.57M	10.04M	63.62M	-5.39M
Investing Cash Flow	0	-20.15M	-14.18M	-5.88M	-61.71M	2.31M
Financing Cash Flow	0	-2.63M	1.14M	-1.63M	-1.97M	3.14M

ICDS Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price42.11

Price Trends

50DMA49.84Negative

100DMA45.81Negative

200DMA45.25Negative

Market Momentum

MACD-2.44Negative

RSI34.57Neutral

STOCH45.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ICDSLTD, the sentiment is Negative. The current price of 42.11 is below the 20-day moving average (MA) of 43.27, below the 50-day MA of 49.84, and below the 200-day MA of 45.25, indicating a bearish trend. The MACD of -2.44 indicates Negative momentum. The RSI at 34.57 is Neutral, neither overbought nor oversold. The STOCH value of 45.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ICDSLTD.

ICDS Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ICDSLTD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:ADROITINFO	76Outperform	INR 686.68M	22.18	―	―	53.91%	99.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ICDSLTD	50Neutral	INR 548.55M	98.04	―	―	-46.20%	-68.73%
IN:DHRUV	40Underperform	INR 388.81M	-1.08	―	―	-63.77%	-537.92%
IN:GSS	38Underperform	INR 260.13M	-0.53	―	―	-26.71%	-1533.08%
IN:SECURKLOUD	37Underperform	INR 512.52M	-2.59	―	―	-50.11%	87.17%
IN:HGM	31Underperform	INR 510.35M	-7.35	―	―	85.78%	-232.43%

* General Sector Average

Performance Comparison

IN:ICDSLTD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ICDSLTD	ICDS Ltd.	42.11	-6.89	-14.06%
IN:ADROITINFO	Adroit Infotech Limited	12.57	1.05	9.11%
IN:DHRUV	Dhruv Consultancy Services Ltd.	20.50	-31.25	-60.39%
IN:GSS	GSS Infotech Limited	10.08	-14.16	-58.42%
IN:HGM	HOV Services Limited	40.52	-36.28	-47.24%
IN:SECURKLOUD	SecureKloud Technologies Limited	15.34	-4.96	-24.43%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 01, 2026

ICDS Ltd. AI Stock Analysis