WSFX Global (511147)

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

Key Financials

Strengths

• Revenue grew 41.26% and profit grew 50.86%, showing strong top-line momentum and better-than-linear earnings growth.
• Piotroski F-Score of 7/9 suggests solid financial health and efficient operations for a small fintech.
• ROCE of 18.00% is reasonably attractive, and the 2.40% dividend yield offers some income while the company is growing.
• Latest quarter sales of ₹28 Cr and net profit of ₹2 Cr imply continuing momentum, and a PEG of 0.46 makes growth look reasonably valued if it persists.

Concerns

• P/E of 21.22 and P/B of 3.31 are not cheap; at ₹101.46 the stock sits at the 52-week high, leaving limited margin of safety.
• ROE of only 10.22% is modest relative to the 3.31x book value multiple; the premium pricing needs continued high growth.
• Debt/Equity and promoter holding are listed as N/A — poor disclosure is a red flag for a value investor in a small company.
• Quarterly net margin is only about 7% (₹2 Cr profit on ₹28 Cr sales), showing limited buffer against competition or cost pressures.

AI Analysis

At ₹101.46, WSFX Global is a small-cap fintech story with real momentum but little margin of safety. The numbers show a fast-growing business: sales up 41.26%, profits up 50.86%, and a PEG of 0.46 — on the surface, growth is still reasonably priced despite a trailing P/E of 21.22. Latest quarter sales of ₹28 Cr and net profit of ₹2 Cr suggest the momentum is continuing. The Piotroski score of 7/9 points to sound financial health, and ROCE of 18% is respectable for a financial technology business. The 2.40% dividend is a small but welcome reward while the company reinvests. But I must be careful. Book value is ₹30.69 and the stock trades at 3.31 times book while earning only 10.22% on equity. That is not a bargain; it is a premium for future growth. In Graham's language, the margin of safety is thin. At the top of the 52-week range, the market has already priced in a lot of good news. Worse, I do not know the debt-equity ratio or promoter holding — the data simply say N/A. For a small fintech, lack of disclosure is a warning flag, not a detail. Is there a moat? I cannot identify one from the figures. A 7% net margin (₹2 Cr on ₹28 Cr quarterly sales) leaves little room for error and invites competition. If growth continues, the stock may be fine; if it slows, the high P/B and modest ROE will be unforgiving. I would wait for a larger margin of safety, or at least clarity on capital structure and ownership.

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