Lee & Nee Soft. (517415)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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