Prostarm Info Systems Limited (PROSTARM) AI Stock Analysis

Prostarm Info Systems Limited

(NSE:PROSTARM)

Select Model

Rating:59Neutral

Price Target:INR 130.00▲(4.78% Upside)

Action:reiterated

Date:09/24/26

The overall score is constrained by a critical divergence between strong accounting profitability and weak cash generation, which is the most significant risk factor. While the balance sheet is solid and revenue growth is exceptional, negative operating and free cash flow raise liquidity concerns. Technicals show a stock in a neutral-to-bearish consolidation phase, and the valuation is fair but not compelling without dividends. The company's high-growth trajectory is promising, but it must demonstrate a path to positive cash flow to warrant a higher score.

Positive Factors

Revenue Growth and ProfitabilityFY2026 revenue rose about 171% while gross margin improved to 19.1% and net margin remained 8.6%. This combination indicates the company scaled materially without losing overall profitability, providing a stronger earnings base for the next several quarters.

Negative Factors

Weak Cash ConversionDeeply negative operating and free cash flow show that reported profits are not converting into cash, creating a persistent funding and liquidity concern. If this pattern continues, the company may need external financing and have less flexibility to fund growth internally.

Prostarm Info Systems Limited (PROSTARM) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 7.35B
Dividend Yield: ―
Average Volume (3M): 19.11K
Price to Earnings (P/E): 19.6
Beta (1Y): 1.83
Revenue Growth: ―
EPS Growth: ―
Country: India
Employees: 470
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Prostarm Info Systems Limited Business Overview & Revenue Model

Company Description

Prostarm Info Systems Ltd. is a key player in the realm of power solutions, focusing on the design, manufacturing, assembly, sale, service, and supply of sophisticated energy storage and power conditioning equipment. The company's operations span bot...

How the Company Makes Money

null

Prostarm Info Systems Limited Financial Statement Overview

Summary

Strong revenue growth (+170.7%) and a fortified balance sheet (D/E 0.32) are offset by severe cash flow negativity (Op. CF -478M, FCF -700M). The inability to convert robust net income into cash is a significant risk, pulling the composite financial score down.

Income Statement

85Very Positive

Balance Sheet

80Positive

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.63B	3.51B	3.86B	2.58B	2.30B	1.71B
Gross Profit	891.08M	561.34M	736.63M	692.21M	574.49M	364.38M
EBITDA	489.64M	473.95M	521.63M	365.93M	289.74M	163.09M
Net Income	317.93M	296.84M	330.05M	233.12M	199.86M	113.93M
Balance Sheet
Total Assets	0	2.38B	5.37B	2.03B	1.55B	980.24M
Cash, Cash Equivalents and Short-Term Investments	137.87M	77.52M	755.50M	53.83M	18.27M	60.28M
Total Debt	0	672.30M	929.68M	434.70M	248.51M	32.09M
Total Liabilities	-2.64B	1.34B	2.51B	1.17B	922.26M	542.74M
Stockholders Equity	2.64B	1.04B	2.87B	842.96M	610.00M	409.51M
Cash Flow
Free Cash Flow	-75.10M	-196.40M	-699.59M	-162.51M	-253.92M	-13.12M
Operating Cash Flow	-53.65M	-75.95M	-477.86M	-78.02M	-135.03M	41.63M
Investing Cash Flow	-845.78M	-143.62M	-1.16B	-78.58M	-83.48M	-88.63M
Financing Cash Flow	1.02B	188.84M	1.65B	154.23M	206.28M	57.16M

Prostarm Info Systems Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price124.07

Price Trends

50DMA131.40Negative

100DMA133.03Negative

200DMA140.51Negative

Market Momentum

MACD-3.05Positive

RSI43.94Neutral

STOCH41.89Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PROSTARM, the sentiment is Negative. The current price of 124.07 is below the 20-day moving average (MA) of 127.11, below the 50-day MA of 131.40, and below the 200-day MA of 140.51, indicating a bearish trend. The MACD of -3.05 indicates Positive momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 41.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PROSTARM.

Prostarm Info Systems Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:PROSTARM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:FINCABLES	78Outperform	INR 174.25B	21.79	―	0.79%	26.53%	29.17%
IN:KEI	69Neutral	INR 359.63B	34.14	―	0.12%	25.18%	32.49%
IN:POLYCAB	67Neutral	INR 1.18T	37.00	―	0.60%	40.99%	28.09%
IN:RRKABEL	66Neutral	INR 232.61B	34.60	―	0.46%	45.36%	66.42%
IN:PRECWIRE	66Neutral	INR 71.34B	40.56	―	0.32%	46.02%	80.46%
IN:PROSTARM	59Neutral	INR 7.30B	19.63	―	―	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:PROSTARM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:PROSTARM	Prostarm Info Systems Limited	124.00	-40.25	-24.51%
IN:FINCABLES	Finolex Cables Limited	1139.35	357.71	45.76%
IN:KEI	KEI Industries Limited	3760.00	-230.03	-5.77%
IN:POLYCAB	Polycab India Ltd.	7800.00	271.98	3.61%
IN:PRECWIRE	Precision Wires India Limited	390.25	162.48	71.34%
IN:RRKABEL	RR Kabel Ltd.	2056.60	641.64	45.35%

Prostarm Info Systems Limited Corporate Events

Prostarm Info Systems Updates Corporate Identification Number After Object Clause Change

Oct 10, 2026

Prostarm Info Systems Limited has announced a change in its Corporate Identification Number following an alteration to the object clause of its Memorandum of Association, approved by shareholders at the September 11, 2026 annual general meeting and s...

Prostarm Info Systems Gains NSE Nod for Preferential Warrant Issue

Oct 3, 2026

Prostarm Info Systems Limited has received in-principle approval from the National Stock Exchange of India under SEBI’s Listing Obligations and Disclosure Requirements for a preferential issue of up to 2,898,717 warrants. These warrants are con...

Prostarm Info Systems Closes Trading Window Ahead of Half-Year Results

Sep 23, 2026

Prostarm Info Systems Limited has announced the closure of its trading window for designated persons, their immediate relatives and other insiders starting October 1, 2026, in line with SEBI’s Prohibition of Insider Trading Regulations and the...

Prostarm Info Systems Sets September 11 Date for 19th AGM and Audit Appointments

Aug 17, 2026

Prostarm Info Systems Limited has scheduled its nineteenth Annual General Meeting for September 11, 2026, to be held via video conferencing and other audio-visual means, with the deemed venue at its registered office in Navi Mumbai. Shareholders will...

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: Sep 24, 2026

Prostarm Info Systems Limited AI Stock Analysis