Dynavision (517238)

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

Key Financials

Strengths

• ROE of 27.67% and ROCE of 20.81% show strong capital efficiency for a small services firm.
• Piotroski F-Score of 7/9 suggests solid financial health and decent earnings quality.
• Profit growth of 33.33% with P/E of 12.58 gives a PEG of 0.66, an attractive growth-to-price equation.
• Latest quarter profitability is positive: ₹1 Cr net profit on ₹3 Cr sales.

Concerns

• Revenue growth is weak at 4.73%; profit growth depends on margins rather than top-line expansion.
• P/B of 5.05 is high; paying ₹282 for ₹55.87 book value leaves little margin of safety.
• No dividend yield means the investor receives zero cash return while waiting.
• Promoter holding is not disclosed and the business description is vague, creating transparency risk.

AI Analysis

At ₹282, Dynavision is a microcap with a market cap of ₹109 crore. The first thing that catches my eye is the profitability: ROE of 27.67% and ROCE of 20.81% are well above what a small services company typically earns. A Piotroski score of 7/9 also tells me the financial health is not shaky. With a P/E of 12.58 and profit growth of 33.33%, the PEG ratio comes to 0.66, which appears attractively priced if that earnings growth is durable. But I must be careful. Sales growth is just 4.73%, so the profit growth is coming from margin improvements, not top-line expansion. The latest quarter sales are only ₹3 crore, with net profit of ₹1 crore — a very small canvas. A high return on equity can be wonderful, but with book value at ₹55.87 and the stock at ₹282, I am paying over 5 times book. That removes much of the margin of safety. As Graham would say, value must be supported by tangible evidence; here, the absence of dividend means the shareholder receives no cash while waiting. Promoter holding is not disclosed, which is a governance blind spot. The share price is at the top of its 52-week range, ₹145 to ₹282, so the market already knows about this momentum. I like the apparent absence of heavy debt, but D/E is not given. I cannot call this a wonderful business at a cheap price; I can call it a high-return, fast-growing small company that needs scrutiny. If it can convert its 33% profit growth into sustainable sales growth and maintain ROE without leverage, it may deserve a long-term look. For now, I would watch, not fill the basket.

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