Edvenswa Enter (517170)
CyclicalScore breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹68.53 |
| Market Cap | ₹200.22 Cr |
| P/E Ratio | 5.36 |
| ROCE | 16.63% |
| ROE | 1.13% |
| Dividend Yield | 0% |
| Profit Growth | -48% |
| Debt/Equity | — |
| Sales Growth | -19.83% |
| 52-Week Range | ₹19.01 — ₹68.53 |
| Sector | IT - Software |
| Book Value | ₹27.72 |
Strengths
- Low P/E of 5.36 suggests potential value if earnings stabilize.
- ROCE of 16.63% indicates decent operational capital efficiency.
- Latest quarter remains profitable with ₹2 Cr net profit on ₹31 Cr sales.
- Book value of ₹27.72 provides a tangible reference point.
Concerns
- Sales growth of -19.83% and profit growth of -48% show rapid deterioration.
- ROE of 1.13% is far below acceptable shareholder returns.
- Piotroski F-Score of 3/9 signals weak financial health.
- No dividend and trading near the 52-week high offer little margin of safety.
AI Analysis
Let's look at Edvenswa Enter. Trading at ₹68.53 with a market cap of ₹200 Cr, the stock looks cheap on a P/E of 5.36. But cheap can be a trap. The business is shrinking: sales down 19.83% and profits down 48%. A Piotroski F-Score of 3 out of 9 tells me the financial health is poor. The ROE of 1.13% is unacceptable — as owners, we earn barely a rupee for every hundred rupees of book value. Book value is ₹27.72, so paying 2.47 times book for a business that generates this little return on equity makes no sense. The ROCE of 16.63% is curious, suggesting the operating business earns decent returns on capital employed, but that doesn't translate to shareholder earnings. Perhaps there are interest burdens or other charges; without debt/equity data, I can't fully assess leverage. The latest quarter shows sales of ₹31 Cr and net profit of ₹2 Cr — so it's still profitable, but the trend is deeply negative. No dividend, so we rely solely on capital gains. With the price at its 52-week high, the market has already re-rated this stock. This is not a franchise with a durable moat; it's a cyclical software consultancy facing demand headwinds. I need a margin of safety, and I don't see one here. Better to watch from the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer