Quadrant Tele. (511116)

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

Key Financials

Strengths

• Latest quarter is profitable with net profit of ₹2 Cr on revenue of ₹51 Cr.
• Reported profit growth of 115.51% indicates a possible earnings recovery from a low base.
• Market cap of ₹144 Cr relative to quarterly sales of ₹51 Cr gives a modest sales multiple if the top line stabilizes.
• Piotroski F-score of 5/9 shows some improvement in financial health, not a completely distressed balance sheet.

Concerns

• Sales growth is negative at -11.86%; the top line is shrinking.
• ROCE is 0.00% and ROE is only 3.03%, meaning capital is not being deployed profitably.
• Trailing P/E is 0.00/not meaningful, no dividend is paid, and promoter holding, debt/equity, and book value are unavailable for verification.
• A ₹2 Cr quarterly profit is tiny; sustainability and scalability are untested in a capital-intensive telecom industry.

AI Analysis

Quadrant Tele is precisely the kind of stock I would pass on without a second look. It trades at ₹2.36 with a market cap of ₹144 Cr, but the price tells me nothing about intrinsic value. The trailing P/E is not meaningful, book value is unavailable, and the latest quarter’s net profit of ₹2 Cr on sales of ₹51 Cr is too small to build a case for durable earnings. Sales are down 11.86%, and ROCE is 0.00%—this is not a business earning a return on the capital employed. ROE of 3.03% is below what a bank deposit would offer, and there is no dividend to compensate. In Graham’s terms, an investment requires a margin of safety; here, the absence of debt/equity and promoter-holding data removes any margin of certainty. The 115.51% profit growth sounds exciting, but it starts from a very low base. A single profitable quarter does not make a franchise, especially in telecom, an asset-heavy industry with fierce competition and constant capital needs. The Piotroski F-score of 5/9 is mediocre, suggesting some improvement but not a clean recovery. The stock has run from ₹0.24 to ₹2.36, so the market is already pricing in a turnaround. As Buffett might say, it’s far better to buy a wonderful business at a fair price than a troubled business at a cheap price. I do not see a moat, predictable cash flows, or reliable governance. This could be a turnaround, but the evidence is insufficient. I will wait for stronger sales, better returns on capital, and full disclosure before investing.

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