Melstar Information Technologies Limited (MELSTAR) AI Stock Analysis

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Melstar Information Technologies Limited

(NSE:MELSTAR)

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Rating:44Neutral

Price Target:INR 473.00▼(-2.97% Downside)

Action:reiterated

Date:11/14/26

The overall score is weighed down primarily by severe losses, cash burn, high leverage, and a negative P/E ratio. Strong price momentum lifts the result, but the technical strength appears highly extended and does not offset the company’s weak financial condition.

Positive Factors

Balance-sheet equity recoveryThe return to positive equity provides a stronger capital base than the company had in earlier years and may improve financial resilience. However, this repair is only a partial strength because the latest period also includes losses and materially higher leverage.

Negative Factors

Severe unprofitable operationsThe latest results show that costs materially exceed revenue, producing a large net loss and deeply negative gross, operating, and net margins. This weak profitability limits internally funded growth, reduces earnings quality, and makes a durable recovery dependent on significant operational improvement.

Melstar Information Technologies Limited (MELSTAR) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 8.25B
Dividend Yield: ―
Average Volume (3M): 137
Price to Earnings (P/E): -396.9
Beta (1Y): 1.61
Revenue Growth: ―
EPS Growth: 98.40%
Country: India
Employees: 81
Sector: General
Sector Strength: 55
Industry: Software - Application

Melstar Information Technologies Limited Business Overview & Revenue Model

Company Description

Melstar Information Technologies Limited operates as a software services firm, delivering a broad spectrum of information technology (IT) solutions. Its client base spans sectors such as banking, insurance, government, education, healthcare, and gene...

Melstar Information Technologies Limited Financial Statement Overview

Summary

The score is constrained by deep operating and net losses, sharply negative and volatile cash flow, and debt materially exceeding equity. Positive equity and a larger asset base provide limited support, but the overall financial profile remains highly fragile.

Income Statement

18Very Negative

Balance Sheet

40Negative

Cash Flow

16Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	22.50M	7.50M	0	0	0	51.00K
Gross Profit	6.58M	-9.01M	0	0	0	19.00K
EBITDA	-3.15M	-21.10M	-4,118	121.42M	0	0
Net Income	-3.25M	-21.39M	-12.12K	112.79M	-102.00K	-4.09M
Balance Sheet
Total Assets	173.98M	139.15M	103.21M	99.86M	86.18M	87.43M
Cash, Cash Equivalents and Short-Term Investments	2.05M	676.00K	1.77M	3.18M	991.00K	2.24M
Total Debt	116.82M	85.43M	28.82M	28.84M	29.70M	29.70M
Total Liabilities	122.80M	90.40M	33.08M	39.07M	141.54M	142.69M
Stockholders Equity	51.18M	48.74M	70.14M	60.79M	-55.36M	-55.26M
Cash Flow
Free Cash Flow	0	-24.39M	-22.86M	5.43M	-1.25M	418.00K
Operating Cash Flow	0	-21.88M	-22.70M	5.43M	-1.25M	418.00K
Investing Cash Flow	0	-2.51M	-162.00K	0	0	0
Financing Cash Flow	0	23.30M	21.45M	-3.24M	0	1.10M

Melstar Information Technologies Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:MELSTAR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INSPIRISYS	69Neutral	INR 3.86B	9.12	―	―	23.30%	-5.56%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:CYBERTECH	55Neutral	INR 3.85B	12.70	―	18.29%	10.49%	-9.67%
IN:COMPINFO	48Neutral	INR 83.20M	-1.10	―	―	―	―
IN:MELSTAR	44Neutral	INR 126.31M	-396.85	―	―	―	98.40%
IN:HCL.INSYS	40Underperform	INR 3.31B	-6.03	―	―	-20.67%	-184.80%
IN:GSS	39Underperform	INR 256.52M	-0.55	―	―	-26.71%	-1533.08%

* General Sector Average

Performance Comparison

IN:MELSTAR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:MELSTAR	Melstar Information Technologies Limited	487.49	271.49	125.69%
IN:COMPINFO	Compuage Infocom Ltd	0.97	-1.20	-55.30%
IN:CYBERTECH	CyberTech Systems & Software Ltd.	126.50	-21.70	-14.64%
IN:GSS	GSS Infotech Limited	10.21	-11.79	-53.59%
IN:HCL.INSYS	HCL Infosystems Limited	9.95	-4.80	-32.54%
IN:INSPIRISYS	lnspirisys Solutions Limited	87.04	-14.25	-14.07%

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: Nov 14, 2026

Melstar Information Technologies Limited AI Stock Analysis