- Price then
- INR 447.20
- Market cap then
- INR 898 Cr.
Unified Data-Tech Solutions Ltd. provides data centre infrastructure, cloud products and related IT services. Minerva Capital Research Solutions’ company note gives no explicit recommendation or target price. It highlights improving FY25 margins despite lower revenue, alongside customer concentration and the absence of long-term customer contracts.
About Unified Data-Tech Solutions
Incorporated in 2010 and based in Mumbai, Unified Data-Tech Solutions supplies products and services for IT data centre infrastructure and cloud. It partners with original equipment manufacturers and serves customers in sectors including BFSI, manufacturing and IT/ITeS. The company provides infrastructure design and implementation, cloud and cybersecurity solutions, system integration and technical support. As of Mar’25, it had 38 employees, including 14 in technical support, and served both government and non-government clients.
Investment Rationale
- FY25 margin improvement: Revenue fell (15.4%) Y-o-Y to 220.3 INR Cr., while EBITDA increased from 27.9 INR Cr. in FY24 to 36.0 INR Cr. in FY25. The EBITDA margin rose from 10.7% to 16.3%.
- Higher service contribution: Services made up 49.2% of revenue for Apr’24 to Feb’25, up from 23.8% in FY24. The company attributes improved margins to a higher share of service revenue.
- New order: On 25-Sep’25, the company received an INR 27.6 Cr. domestic order for new product, software licence, installation and integration. Delivery was scheduled within 2 months, with a 5-year warranty.
- Experienced technology appointment: Mr. Pranav Parikh became Chief Technology Officer w.e.f. 5-Aug’25. He has 25 years of relevant experience and has held senior roles at Silver Touch Technologies, Tech Data and Avnet.
- Expansion in Ahmedabad: The company established a new place of business in Ahmedabad on 16-Jun’25.
Unified Data-Tech Solutions Key Financials
| Particulars | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenues | 93.3 | 110.5 | 260.4 | 220.3 |
| % Y-o-Y | 18.4% | 135.7% | (15.4%) | |
| Gross Margins | 23.8 | 25.8 | 47.0 | 49.5 |
| Gross Margins % | 25.5% | 23.4% | 18.1% | 22.5% |
| EBITDA | 11.2 | 12.5 | 27.9 | 36.0 |
| EBITDA % | 12.0% | 11.3% | 10.7% | 16.3% |
| PAT | 9.7 | 10.4 | 25.0 | 34.1 |
| PAT % | 10.2% | 9.2% | 9.4% | 14.8% |
| Total Debt | - | - | - | - |
| Debt / Equity | 0.0x | 0.0x | 0.0x | 0.0x |
| CFO | 2.8 | 23.4 | 9.8 | 49.4 |
| CFO/EBITDA | 25.2% | 187.2% | 35.1% | 137.3% |
The report links FY25 margin improvement to the greater share of services and lower remuneration to promoter directors. Promoter remuneration declined from INR 11.5 Cr. in FY24 to INR 5.5 Cr. in FY25.
Valuation and Target Price
The note reports a PE Ratio of 26.3x at a CMP of INR 447.20 and a market capitalisation of INR 898 Cr. It does not provide a target price, upside or explicit Buy, Hold, Reduce or Sell recommendation. Its peer comparison lists Unified Data-Tech at 26.3x, compared with Dynacons Systems at 15.8x, Orient Technologies at 37.0x and Silver Touch Technologies at 40.2x.
Key Risks
- Revenue decline: FY25 revenue was 220.3 INR Cr., a (15.4%) Y-o-Y decline.
- Customer concentration: The top 5 customers contributed 62% of revenue for the period ended Feb’25 and 79% in FY24.
- No long-term contracts: The company reports that it has no long-term customer contracts.
- Non-exclusive vendors: The company works with vendors on a non-exclusive basis.
- Competitive bidding: Government contracts are awarded through competitive bidding; the reported win rate over the last 3 years was 28.57%.
Business and Revenue Mix
The company’s product areas include data centre infrastructure, virtualization and private cloud, data protection, networking and cybersecurity, secure application delivery and hybrid cloud. Its services include technology advisory, system integration, expert technical support and operational management. Revenue is concentrated in Western and Southern India; for Apr’24 to Feb’25, these regions contributed 65.6% and 32.4% respectively. BFSI accounted for 71.1% of revenue in that period.
Shareholding
| Particulars | Pre-IPO | 30-Sep’25 |
|---|---|---|
| Promoter & Promoter Group | 86.73% | 60.39% |
| Public | 13.27% | 39.61% |
| Total | 100.00% | 100.00% |
The IPO on BSE SME on 29-May’25 was entirely an OFS; fresh issue was nil.
Management
The report identifies Mr. Hiren Rajendra Mehta and Mr. Rajendra Kantilal Mehta as promoters. It notes that Mr. Hiren Mehta has more than 27 years of overall experience, including 20 years in business management, IT infrastructure services and system integration. Mr. Rajendra Mehta has more than 35 years of overall experience, including 6 years in business strategy and implementation.
Peer Comparison
| Company Name | M.Cap (INR Cr.) | PE (x) | 3 Year Revenue CAGR % (FY23-FY25) | 3 Year EBITDA CAGR % (FY23-FY25) | 3 Year PAT CAGR % (FY23-FY25) | FY25 Revenue (INR Cr.) | FY25 EBITDA % | FY25 PAT % |
|---|---|---|---|---|---|---|---|---|
| Unified Data-Tech | 898 | 26.3x | 41.2% | 69.8% | 81.0% | 220.3 | 16.3% | 14.8% |
| Dynacons Systems | 1,176 | 15.8x | 25.5% | 38.8% | 47.1% | 1,267 | 8.3% | 5.7% |
| Orient Tech | 1,894 | 37.0x | 25.3% | 17.9% | 14.8% | 840 | 8.1% | 6.0% |
| Silver Touch Tech. | 921 | 40.2x | 32.7% | 47.8% | 51.2% | 288 | 13.0% | 7.6% |
Our View
The note highlights FY25 margin expansion, a higher services mix and a recent domestic order, while revenue declined and sales remain concentrated among a small group of customers. It does not state an investment verdict or target price, so the report provides no explicit share target price.
Standard disclosures
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Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst's valuation for a stock.
- Buy:> 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%