Netweb Technologies India Ltd.
NSE: NETWEBNetweb Technologies India Ltd.: A 30-second snapshot
Netweb Technologies (NSE: NETWEB) is a domestic IT hardware and high-performance computing systems integrator that reported 90% revenue growth in FY26 with standalone net profit up 65.7% in Q4. The stock trades at Rs 4,620, up 143.6% over 12 months, sitting 24.1% above its 50-DMA and 37.6% above its 200-DMA at a trailing PE of 126.8x — well above the 15–28x range observed across IT sector peers.
P/E
126.8
Forward P/E
60.3
ROE
+32.8%
Debt / Equity
39.02
Profit Margin
+9.4%
Div. Yield
+0.1%
5Y ROE > 15%
4/5
5Y FCF > 0
2/5
Quality
56/100
News
8 headlines · 4 positive · 2 negative
Revenue Miss: Netweb Technologies India Limited Fell 7.2% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models - simplywall.st
simplywall.st
Netweb Technologies FY26 Revenue Surges 90%; Management Guides 35-40% Growth for FY27 - scanx.trade
scanx.trade
Netweb Technologies India standalone net profit rises 65.67% in the March 2026 quarter - Business Standard
Business Standard
Explained: Why Netweb Technologies shares surged 15% today - CNBC TV18
CNBC TV18
Netweb Technologies stock slides 7% despite strong Q4; margins drag - Business Standard
Business Standard
Recent context
- ·On 29 May 2026, NETWEB shares rose approximately 15% in a single session (CNBC TV18), coinciding with strong quarterly results and management guidance of 35–40% revenue growth for FY27.
- ·FY26 full-year revenue growth of 90% and Q4 standalone net profit up 65.7% YoY (Business Standard, May 2026) were reported in the same period as a 7.2% revenue miss versus analyst estimates for Q4 FY26.
- ·Analyst coverage remains limited at 3 analysts with no mean consensus rating available, which reduces the interpretability of any sell-side sentiment signal for this stock.
Strengths
- +5-year revenue growth of 86.6% and earnings growth of 64.3% reflect a sustained high-growth trajectory maintained across multiple years, not a single-year outlier.
- +ROE of 32.83% ranks 2nd of 6 tracked IT sector peers, above Infosys (31.44%), TECHM (16.61%), and WIPRO (15.49%), with ROE above 15% in 4 of tracked years.
- +Quality score of 52 ranks 3rd of 6 peers, above HCLTECH (40), WIPRO (46), and TECHM (46), placing NETWEB in the upper half of tracked IT sector peers on this composite metric.
- +Forward PE of 60.3x represents a compression from the trailing PE of 126.8x, with management guiding 35–40% revenue growth for FY27 — the gap between trailing and forward multiples reflects the scale of earnings growth embedded in current consensus.
Weaknesses
- −Trailing PE of 126.8x is approximately 5–8x the IT sector peer range of 15.6–28.5x, leaving the stock highly sensitive to any deceleration in revenue or earnings growth.
- −RSI at 70.88 is in overbought territory and the stock is 37.6% above its 200-DMA with no resistance levels identified; nearest support at Rs 3,760 is approximately 18.6% below current price.
- −Q4 FY26 revenue missed analyst estimates by 7.2% despite the strong headline growth, signalling that consensus expectations had been set above even the reported strong numbers.
- −FCF was positive in only 2 of tracked years with a rising debt trend, raising questions about cash generation durability relative to the capital intensity of the hardware and systems integration segment.
Open questions
- ?Does the 86.6% five-year revenue growth reflect a structural shift in domestic IT hardware demand — such as government HPC procurement or AI infrastructure build-out — or is it concentrated in a handful of large orders that may not recur at the same pace?
- ?At a forward PE of 60.3x, what level of earnings growth is already embedded in the current price, and how does the 7.2% Q4 revenue miss affect the reliability of FY27 consensus estimates?
- ?How does the rising debt trend and limited FCF history interact with the capital requirements of scaling a hardware and systems integration business over the next two to three years?
- ?What historical episodes from NETWEB or comparable high-PE hardware peers illustrate how valuation re-ratings have played out after similar periods of rapid revenue acceleration followed by an estimate miss?
Peer comparison: IT
Ranks 3 of 6 on qualityTechnical state
Current price
₹4,620.10
SMA 50
₹3,721.78
SMA 200
₹3,356.75
RSI (14)
70.9 (overbought)
From 52w high
-6.2%
1Y return
+143.6%
3M return
+29.7%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highTrailing PE of 126.8x is approximately 5–8x the IT sector peer range (15.6–28.5x), representing extreme valuation compression risk if the 86.6% 5-year revenue growth rate decelerates.
- mediumFCF positive in only 2 of tracked years with a rising debt trend; D/E of 39.0 (on percentage basis, approximately 0.39) warrants monitoring against the capital-intensive hardware and systems integration business model.
- mediumQ4 FY26 revenue missed analyst estimates by 7.2% despite 90% full-year revenue growth, indicating consensus expectations had been priced even higher than the reported outcome.
- mediumRSI of 70.88 is in overbought territory; current price of Rs 4,620 is 24.1% above the 50-DMA (Rs 3,721) and 37.6% above the 200-DMA (Rs 3,357), with nearest support at Rs 3,760 — approximately 18.6% below current price.
- lowAnalyst coverage is sparse at 3 analysts with no mean rating reported; low coverage reduces reliability of any consensus signal and increases vulnerability to large estimate revisions.
Cross-section contradictions
- Stock has appreciated 143.6% over 12 months and trades 24.1% above the 50-DMA and 37.6% above the 200-DMA, yet trailing PE of 126.8x is 5–8x above IT sector peers — price has materially outrun earnings relative to the sector.
- Full-year FY26 revenue surged 90% and Q4 standalone net profit rose 65.7% YoY, yet the same quarter produced a 7.2% revenue miss versus analyst estimates, indicating embedded expectations exceeded even the strong reported outcome.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days