United Interacti (502893)

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

Key Financials

Strengths

• Reported P/E of 13.92 is not demanding on paper, if the trailing earnings figure is reliable.
• ROCE is positive at 3.98%, indicating the company still generates some operating return above capital employed.
• Reported sales growth is 0%, so the annual top-line has remained stable rather than falling sharply.
• As a ₹17 crore microcap, it may attract special-situation or turnaround investors if operations revive.

Concerns

• ROE is negative at -1.98% and profit growth is -36.36%, showing clear earnings deterioration.
• Latest quarter shows zero sales and zero net profit, a critical red flag for business continuity.
• P/B of 19.67 against book value of ₹4.49 leaves no margin of safety.
• Piotroski F-score of 3/9 and no dividend signal weak financial health and no compensation for risk.
• P/E of 13.92 conflicts with negative ROE and zero quarterly profit, raising doubts about data reliability.

AI Analysis

Let me begin with the first rule of investing: don't lose money. United Interacti, a microcap IT-enabled services company with a market cap of just ₹17 crore, asks us to pay ₹88.30 per share. That is 19.67 times book value, while the book value per share is only ₹4.49. For a business earning a negative return on equity of -1.98% and an ROCE of merely 3.98%, there is no justification for such a premium. Graham would say the margin of safety is missing. The reported P/E of 13.92 looks cheap, but the latest quarter shows zero sales and zero profit, and profit growth has fallen 36.36%. When the numbers contradict each other, caution wins. The Piotroski F-score of only 3 out of 9 reinforces my concern about deteriorating financial health. Sales growth is flat at 0%, so there is no momentum on the top line. There is no dividend yield, meaning shareholders are not being paid to wait. The 52-week range of ₹62.01 to ₹109.00 suggests a speculative, uncertain microcap. I do not know the debt-to-equity ratio or promoter holding, but the absence of data is not comforting. As an Indian retail investor, I would ask one question before anything else: why did the latest quarter produce zero revenue? If the operating business has stalled, then the low P/E is a trap, not an opportunity. I need to see restored sales, positive ROE, and trustworthy financial statements. Until then, this is not a business I can value with confidence. I will leave United Interacti in the too-hard pile and focus on companies with clear economics and a margin of safety.

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