IB Infotech (519463)

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

Key Financials

Strengths

• Sales growth of 170.45% and profit growth of 133.33% indicate a fast-growing, albeit tiny, business.
• ROE of 73.96% and ROCE of 38.49% demonstrate high reported returns on a small capital base.
• Piotroski F-Score of 7/9 suggests reasonably healthy financials across selected metrics.
• PEG of 0.34 implies valuation is lower relative to trailing growth, if growth is sustainable.

Concerns

• Latest quarter net profit rounds off to ₹0 Cr despite sales of ₹2 Cr, raising doubts about earnings quality and momentum.
• Valuation is stretched with P/E of 51.46 and P/B of 10.12, leaving little margin of safety.
• Promoter holding and debt/equity are not available, creating transparency and balance-sheet blind spots.
• Dividend yield is negligible at 0.16%, offering no meaningful income support.

AI Analysis

IB Infotech is exactly the kind of microcap that grabs attention and demands caution in equal measure. At ₹140, the market capitalises this business at just ₹18 crore. The stock has climbed from ₹16 to ₹140 in a year, yet the latest quarter shows sales of only ₹2 crore and earnings that round off to zero. As Buffett, I would rather pay a fair price for a wonderful business than a wonderful price for a speculative one; here I am paying 51.46 times trailing earnings and 10.12 times book value for a company with a book value of just ₹13.84. The reported ROE of 73.96% and ROCE of 38.49% look spectacular, but these ratios are flattered by a tiny equity base. The 170.45% sales growth and 133.33% profit growth are real positives, and the PEG of 0.34 seems to suggest reasonable valuation relative to recent momentum. However, Graham would ask: what is the durable earning power? One quarter of zero net profit shows how fragile the recent trajectory can be. I also have missing information on promoter holding and debt-to-equity, so I cannot gauge whether insiders are aligned or whether the balance sheet can weather a slowdown. The Piotroski score of 7 does offer some comfort on financial quality. But with a dividend yield of only 0.16% and a 52-week range that has already multiplied nearly nine times from the low to the high, this feels more like a market story than a steady compounding investment. I cannot build a margin of safety at this price.

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