3i Infotech (3IINFOLTD)

FairStock Score: 26/100 — RISKY

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let me begin the way Graham would: not with the price, but with the business. 3i Infotech is in software and consulting, but the latest quarter shows a company in distress, not compounding. Sales of ₹172 Cr produced only ₹2 Cr of net profit. That is a thin ~1.2% net margin. Sales growth is -5.11%, and profit growth has collapsed by 67.84%. The market cap is ₹289 Cr, and the stock trades at ₹17.55. A P/E of 4.94 looks tempting, but I distrust it. If the latest quarter's tiny profit were annualized, the implied multiple would be far higher. This is exactly the kind of misleading optics that forces me to look through reported earnings. On the positive side, debt/equity is low at 0.11, so the balance sheet is not leveraged. Yet the 55.31% ROE is not a sign of quality when book value is only ₹4.52 and ROCE is a mere 4.94%. The gap shows a thin equity base and weak operating returns. More importantly, promoter holding is 0.00%. I have never liked to trust someone else's business when the operators own nothing. The Piotroski F-Score of 3/9 confirms deterioration. There is no dividend to reward the patient holder. This could be a turnaround candidate because the share sits closer to the 52-week low of ₹12.68 than the high of ₹27.80, but I need evidence of a real turnaround. I prefer a wonderful business at a fair price over a questionable business at a low price. The figures fail my test—there is no margin of safety. I will wait.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer