Altman Z″
Needs current assets and current liabilities.
This company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
CSM Technologies operates primarily in the GovTech space, driving digital transformation across public and enterprise sectors. With a 27-year operating history, the company delivers specialized e-governance platforms across critical verticals including mining, agriculture, education, healthcare, and urban development. Its scalable systems range from farmer empowerment portals like KRUSHAK Odisha and unified scholarship platforms to complex AI/ML-based grievance redressal networks like Mo Sarkar. Geographically, while its core operations are heavily focused on India (accounting for roughly 87.4% of FY25 revenue), CSM has successfully exported its GovTech models to 12 international markets including Ethiopia, Kenya, Rwanda, and Gambia, executing projects for governments and development agencies. What makes the company distinct is its deep domain expertise in navigating complex government procurement, holding CMMI 3.0 and SOC 2 Type II certifications, and a robust order book providing substantial revenue visibility. Their customer base is heavily concentrated in the public sector, with government clients contributing over 74% of total revenue.
High entry barriers in government IT contracting sustained by a 27-year track record, specialized certifications (CMMI 3.0), and proprietary intellectual property like patented ore sampling technology.
CSM Technologies is an IT solutions provider specializing in GovTech and digital transformation. The company earns revenue by developing, implementing, and maintaining e-governance platforms, digital public infrastructure, and automation systems for government agencies and enterprise clients.
Source: DRHP Business Overview
Where the revenue came from, as the document splits it.
| Name | Pct | Source |
|---|---|---|
| Government and Public Services | 25.75 | DRHP Segment Reporting, FY25 |
| Mining and Allied Services | 24.74 | DRHP Segment Reporting, FY25 |
| Agriculture and Allied Services | 16.1 | DRHP Segment Reporting, FY25 |
| Education | 14.82 | DRHP Segment Reporting, FY25 |
| Industry and Trade Facilitation | 11.13 | DRHP Segment Reporting, FY25 |
| Healthcare | 7.32 | DRHP Segment Reporting, FY25 |
The GovTech and digital transformation sector is driven by increasing public sector digitization, demand for transparency in citizen services, and the global push for scalable Digital Public Infrastructure (DPI). Government spending on IT is accelerating to facilitate smart governance, analytics-driven policy making, and direct benefit transfers. This creates a high-entry-barrier market where established vendors with specialized certifications, long-term government relationships, and proven execution capabilities dominate complex procurement tenders.
Sector slug: govtech-it-services
Source: DRHP Industry Overview
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Trigyn Technologies Limited | RHP Basis for Offer Price | ||||
| Allied Digital Service Limited | RHP Basis for Offer Price |
As presented in the offer document. Post-listing figures are in the statements above.
| Period | Pat cr | Pat margin | Revenue cr | Ebitda margin | Eps | Source |
|---|---|---|---|---|---|---|
| FY25 | 14.09 | 7.07% | 199.24 | 14.69% | 3.72 | RHP Financial Information |
| FY24 | 12.55 | 6.38% | 196.71 | 12.05% | RHP Financial Information | |
| FY23 | 15.82 | 9.86% | 160.43 | 17.37% | RHP Financial Information |
Written before listing, answered from the document itself.
Where is the money going?
₹56.00 Cr for funding working capital requirements, ₹22.63 Cr for repayment of borrowings, and the remainder for inorganic growth and general corporate purposes.
RHP Objects of the Issue
How concentrated is the customer base?
Highly concentrated in the public sector. Revenue is heavily dependent on state and central government departments, with a significant geographic concentration in Odisha.
RHP Risk Factors
Is it profitable and growing?
Yes. Revenue grew from ₹160.43 Cr in FY23 to ₹199.24 Cr in FY25. PAT has remained relatively stable, posting ₹14.09 Cr in FY25.
RHP Financial Information
What sits in the footnotes / contingent liabilities?
High volume of performance bank guarantees required for public tenders, and extended trade receivable cycles inherent in B2G (Business-to-Government) contracts.
RHP Contingent Liabilities & MDA
What the issue priced at, on the figures in the document.
Company valuation multiples are not explicitly calculated prior to the price band finalization. The RHP lists Trigyn Technologies and Allied Digital Service as listed industry peers for comparison.
Source: RHP Basis for Offer Price
Trading at 20.4x earnings against its own median of 31.9x: 2.9 standard deviations below its usual range. This compares the company with its own history, not with other companies.
How to read this: Price shows the closing price with its 50-day (amber) and 200-day (grey) averages; bars at the bottom are daily volume, green on up days and red on down days; dashed lines mark the 52-week high and low. vs Nifty 50 starts both at 100 so you can see which did better over the period. P/E shows what the market paid for each rupee of profit, inside the band it usually trades in. Drawdown shows how far below its best price the share has been. Hover anywhere for the numbers on that day.
What the numbers mean when read together — computed from the filings, not a score.
The business reported a profit, yet its operations drained cash rather than generating it. Profit that comes with negative operating cash is the single most important thing to understand here.
Why this reading: Flagged on a single year deliberately: negative operating cash alongside a reported profit is plain, material, and hard to explain benignly — exactly the kind of obvious signal that should never be smoothed over.
Operating cash flow ₹-6 cr against trailing net profit ₹24 cr. When operations consume cash while the P&L shows profit, ask whether receivables are ballooning, revenue is booked ahead of collection, or costs are being capitalised.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-21 cr, negative in 4 of 5 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Borrowings rose 112% over two years while the company also carries ₹1 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Borrowings moved to ₹72 cr from ₹34 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 16.2% of assets. Free cash flow negative in 4 of 5 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital is going in far faster than revenue is coming out. For a business mid-build that is expected — the test is whether it converts.
cumulative operating cash flow ÷ cumulative net profit
₹34 cr ÷ ₹73 cr, over 5 years
0.47×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹24 − ₹-6) cr ÷ average assets
16.2%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
10.6% × 1.05 × 2.09
23.3%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹39 cr ÷ ₹7 cr
5.57×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹72 cr ÷ ₹103 cr
0.70×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +126% vs revenue +41%, FY2023 to FY2026
85pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 71.18% to 71.18% across these quarters.
FII trimmed from 9.19% to 6.04% across these quarters.
Other rose from 19.63% to 22.78% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Debtor days
How long customers take to pay | 105 | 51 | 66 | 113 | 145 |
| Inventory days
How long stock sits before it sells | 0 | — | — | — | — |
| Cash conversion cycle
Debtor + inventory − payable days | 105 | 51 | 66 | 113 | 145 |
| Working capital days | 53 | 48 | 40 | 72 | 72 |
| ROCE %
Return on capital employed | — | 49.0% | 26.0% | 24.0% | 29.0% |
What this sector is read on: Constant-currency growth QoQ, Constant-currency growth YoY, EBIT margin, Deal TCV, Net headcount adds, LTM attrition, Utilisation, Top-5 client share. These come from the filings, not the market feed, and appear here once a quarter is read.
Read using the IT services framework (from the listed sector). Primary valuation lens: P/E on constant-currency growth.
Read more closely in this sector: Large deal ramp-downs or client losses named · Pass-through revenue · Onsite and offshore mix shift · Deal TCV against revenue growth.
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Revenue from operations | 92 | 160 | 197 | 199 | 226 |
| Other income | 0 | 1 | 2 | 1 | 0 |
| Depreciation | 3 | 4 | 5 | 6 | 6 |
| Finance cost | 1 | 2 | 3 | 4 | 7 |
| Profit before tax | 10 | 23 | 18 | 20 | 32 |
| Net profit (owners) | 6 | 16 | 13 | 14 | 24 |
| EPS (₹) | 216.07 | 25.12 | 19.93 | 21.98 | 6.10 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Metric | Mar 2025 | Jun 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 60 | 35 | 65 | 60 | 43 |
| Other Income | 0 | 0 | 0 | -1 | 1 |
| Expenses | 50 | 42 | 49 | 45 | 50 |
| Depreciation | 2 | 2 | 2 | 1 | 1 |
| Finance cost | 1 | 2 | 2 | 1 | 2 |
| Profit before tax | 7 | -10 | 12 | 11 | -11 |
| Net Profit | 5 | -7 | 9 | 9 | -8 |
| EPS | 8.15 | -1.95 | 2.19 | 2.41 | -1.61 |
| Item | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Equity Capital | 0 | 6 | 6 | 6 | 39 |
| Reserves | 34 | 44 | 53 | 71 | 64 |
| Borrowings | 7 | 9 | 34 | 35 | 72 |
| Net block | 19 | 28 | 31 | 59 | 58 |
| CWIP | 1 | 3 | 23 | 0 | 12 |
| Investments | 1 | 0 | 1 | 0 | 1 |
| Total Assets | 64 | 80 | 124 | 155 | 215 |
| Line | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Cash from operations | 4 | 17 | 10 | 9 | -6 |
| Cash from investing | -10 | -9 | -32 | -9 | -20 |
| Cash from financing | 0 | -6 | 19 | 0 | 30 |
| Free cash flow | -11 | 8 | -19 | -1 | -21 |
| Net change in cash | -6 | 3 | -4 | 0 | 4 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.
CSM Technologies reported revenue of ₹42.7 cr for April to June 2026, +21.2% on the year and −29.3% on the quarter.
Operating profit (EBITDA) was −₹7.6 cr, a margin of −17.8%, +83 bps on the year and −4,291 bps on the quarter.
The net loss was ₹8.3 cr, with earnings per share of −₹1.61.
IT services revenue moves with deal wins, client budgets and the rupee: a part of rupee growth can be currency, which only the constant-currency figure in the filing separates out. Margins move most with wage hikes, utilisation and currency. The quarterly statements do not carry constant-currency growth, deal wins and headcount; those come with the filing read.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
Depreciation fell while the business grew. Were asset lives changed?
Source: Quarterly statements
Could not run on this quarter: Headline vs core profit, Other income carrying profit, Exceptional items that recur, Finance cost rising, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
FinMinutes scored the offer document 70/100 before listing. 0 quarters of numbers since. Promise against delivery
| Q4 FY25 | Q1 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|---|---|
| Revenue | ₹59.7 cr | ₹35.2 cr | ₹64.6 cr | ₹60.4 cr | ₹42.7 cr |
| YoY | — | — | — | +1% | +21% |
| EBITDA margin | 16.9% | −18.6% | 24.0% | 25.1% | −17.8% |
| Other income, % of PBT | 6% | — | 3% | −13% | — |
| Exceptional items | — | — | — | — | — |
| Tax rate | 29% | — | 29% | 19% | — |
| Net profit | ₹5.2 cr | −₹7.3 cr | ₹8.7 cr | ₹9.3 cr | −₹8.3 cr |
| YoY | — | — | — | +78% | — |
| Core profit YoY | — | — | — | +86% | — |
| EPS | ₹8.15 | −₹1.95 | ₹2.19 | ₹2.41 | −₹1.61 |
| Flags | · | · | · | 2 | 1 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.