Technvision Ven. (501421)

FairStock Score: 12/100 — RISKY

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

Key Financials

Strengths

• Profit growth of 172.79% shows some operational leverage or cost discipline
• Piotroski F-score of 6/9 indicates moderately decent financial health signals
• Latest quarter is profitable with ₹4 crore net profit on ₹74 crore sales
• ROCE of 9.81% is higher than ROE, suggesting possible efficient use of capital at operating level
• Software products business is asset-light with no visible debt burden (D/E N/A)

Concerns

• Absurd valuation: P/E of 1,000 and P/B of 112.17 offer no margin of safety
• Sales declining at -8.13% while paying 112 times book value is dangerous
• ROE of only 3.35% shows poor shareholder returns despite a premium valuation
• Zero dividend yield; promoter holding not disclosed, raising governance uncertainty
• Price at ₹3,171 is below the stated 52-week range low of ₹4,180, indicating severe price deterioration or data anomaly

AI Analysis

Let me run through the numbers, and they do not make for a happy story. Technvision Ven. sells at ₹3,171 with a market cap of ₹1,995 crore, but the company earned only about ₹2 crore over the trailing year—hence a P/E of 1,000. That is not a valuation; it is a fantasy. The book value is just ₹28.27 per share, so the price-to-book of 112 times means I am paying a fortune for assets that generate a puny 3.35% return on equity. Even ROCE at 9.81% is mediocre, and it is not enough to justify such a premium. Sales actually fell 8.13% in the latest year. Yes, profit jumped 172.79%, but from a very low base, and the recent quarter shows only ₹4 crore net profit on ₹74 crore sales—hardly the stuff of a durable compounder. The zero dividend yield means I get no cash while I wait. The Piotroski score of 6 out of 9 gives a bit of comfort on financial health, but the PEG of 5.79 tells me the market has already priced in years of perfection. I don't see an economic moat here. A software products business with declining sales and microscopic profits is not the kind of enterprise Graham would bless. The stock trades below its 52-week range, which suggests the market itself is questioning the story. This is a speculative instrument, not an investment. I would need a massive margin of safety to even look further—and there is none, with price 112 times book and 1,000 times earnings. I'll pass.

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