Informed Techn. (504810)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 suggests some improvement in financial fundamentals
• Book value of ₹49.99 provides an asset floor, with P/B at 1.74 not extreme
• Reported profit growth of 135.87% could indicate early turnaround potential, though it needs verification
• Micro-cap BPO/KPO niche may allow flexibility to pivot or attract strategic interest

Concerns

• Latest quarter sales and net profit are both ₹0 Cr, implying no visible operating activity
• Sales growth is deeply negative at -44.74%, showing severe revenue erosion
• ROE of 5.21% and ROCE of 7.76% are far below what I would demand from a going concern
• P/E of 22.70 and PEG of 0.17 are unreliable because earnings may be exceptional or non-recurring

AI Analysis

Informed Techn looks like a classic 'show me first' situation. As a value investor, I want a business with durable economics and a clear earning stream. This micro-cap BPO/KPO has a market cap of only ₹36 Cr. At that size, one client or contract cycle can move everything, so I demand even more proof. The evidence here is troubling. Sales have collapsed 44.74% and the latest quarter shows ₹0 Cr sales and ₹0 Cr net profit. That is not a healthy operating business; it is a business with no visible top line. Trailing P/E of 22.70 and a PEG of 0.17 are meaningless if earnings are not repeatable. Profit growth of 135.87% may look attractive, but from a tiny or possibly exceptional base, it can mislead. The balance sheet appears less stressed: book value is ₹49.99 and Piotroski F-Score is 6/9, which suggests some financial stability. But price-to-book of 1.74 means I am paying a premium to book for a company earning only 5.21% on that equity and 7.76% on capital. Graham would want earnings power, not just assets. There is no dividend, so I get nothing while I wait. At ₹87.05, the market cap is ₹36 Cr, but what am I buying? A revenue shell with hope of revival? I will not rely on a PEG ratio derived from a 135% profit jump that has no operating support. This could be a genuine turnaround; sometimes small BPOs fall off a cliff and recover. But value investing demands margin of safety. In my view, the current price lacks it. I will wait for sales to return and proof that profits come from operations, not bookkeeping.

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