Lee & Nee Soft. (517415)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹11.14 |
| Market Cap | ₹62.88 Cr |
| P/E Ratio | 176 |
| ROCE | 0.95% |
| ROE | 0.67% |
| Dividend Yield | 0% |
| Profit Growth | -42.11% |
| Debt/Equity | — |
| Sales Growth | -13.12% |
| 52-Week Range | ₹7 — ₹11.98 |
| Sector | IT - Services |
| Book Value | ₹9.86 |
Strengths
- Book value of ₹9.86 and P/B of 1.13 mean the price is only modestly above stated net worth.
- Small revenue base with latest quarterly sales of ₹3 Cr gives room for high percentage growth if demand recovers.
- Stock has moved from 52-week low ₹7.00 to ₹11.14, indicating some market interest in this micro-cap.
Concerns
- P/E of 176 with profit growth of -42.11% is a rich valuation for a deteriorating business.
- Latest quarter net profit of ₹0 Cr and Piotroski F-score of 3/9 show weak financial health.
- ROE of 0.67% and ROCE of 0.95% mean management is not creating meaningful value for shareholders.
- Zero dividend yield provides no compensation for the risk.
AI Analysis
At ₹11.14, this is a ₹63 Cr market cap business selling at 176 times earnings. Graham taught me to treat a high multiple as a warning, not a blessing. The latest quarter shows sales of only ₹3 Cr and net profit of ₹0 Cr, so there is barely an earnings stream to value. ROE is 0.67% and ROCE is 0.95% — these are poor numbers by any standard. Sales have dropped 13.12% and profit has fallen 42.11%. The Piotroski score of 3/9 reinforces the message: the balance sheet and operations are not improving. There is no dividend, so a shareholder earns nothing while waiting. The one supportive point is P/B of 1.13 against book value of ₹9.86; the share is not grossly overvalued relative to book. But a small premium to book is meaningless if the book generates almost no return. In Graham's terms, this is a business with no margin of safety on earnings and no demonstrated moat. From ₹7.00 to ₹11.98 the stock has moved, and today it sits closer to the high, but that is price action, not intrinsic value. I need evidence of a genuine operating turnaround: rising sales, real profits, and higher return on capital. Until then, this remains a speculation in a small IT-enabled services company, not an investment. I'd rather pass and wait for a better price or a better business.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer