Disa India (500068)

FairStock Score: 54/100 — MIXED

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

Key Financials

Strengths

• ROCE of 29.25% and ROE of 22.85% indicate strong capital efficiency
• Sales growth of 31.80% and profit growth of 67.29% show powerful momentum
• Piotroski F-score of 7/9 points to solid financial health
• PEG of 0.60 suggests growth is not fully overpriced despite high P/E
• Dividend yield of 1.63% provides modest shareholder return

Concerns

• P/E of 29.81 and P/B of 10.53 at the 52-week high leave little margin of safety
• Latest quarter net profit margin of roughly 11.6% is moderate; 67% profit growth may normalize
• FairStock Score of 51/100 signals mixed fundamentals beyond the headline ratios
• Debt/Equity is not provided, so leverage clarity is limited

AI Analysis

At ₹18,346, Disa India is not a cheap stock — ₹2,668 crore market cap against book value of ₹1,741.50 per share means I am paying 10.5 times what the balance sheet says. But Graham taught us not to judge a business solely by assets; earning power matters. ROE of 22.85% and ROCE of 29.25% tell me this is a high-quality capital compounder. Sales grew 31.80% and profit jumped 67.29% — that kind of operating leverage is rare. On a trailing P/E of 29.81, the market is paying up, but with 67% earnings growth, the PEG ratio of 0.60 makes the price more reasonable than it first appears. The Piotroski F-score of 7 out of 9 suggests healthy profitability, good momentum, and strong financials. I do not see a debt/equity number, which at least means debt is not a headline risk. The latest quarter — sales ₹129 crore and net profit ₹15 crore — implies a margin near 11.6%, decent but not extraordinary. My caution comes from the margin of safety: at a 52-week high and with a P/B above 10, the market already expects high performance. Any slowdown would hit the share price hard. Dividend yield of 1.63% offers modest income, not protection. The FairStock mixed score of 51 echoes my own mixed feeling: excellent business metrics, but valuation has no room for error. A fast grower can be a wonderful investment, but only if the growth continues. I would want to see sustained high returns and cash generation before committing capital at this price. The quality is evident; the price leaves little to be generous about.

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