Aeonx Digital (524594)

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

Key Financials

Strengths

• Top-line growth of 86.94% shows some revenue momentum.
• Debt/Equity is not reported, suggesting the company is not carrying significant visible leverage.
• ROCE of 9.78% is meaningfully higher than ROE, indicating the operating engine can earn if other costs are controlled.
• Book value of ₹96.38 provides an asset cushion against the current price of ₹128.10.
• A small dividend yield of 0.77% shows at least some cash return to shareholders.

Concerns

• Profit growth of -91.57% and a latest-quarter net loss of ₹1 crore on ₹16 crore sales show the sales surge is not translating to the bottom line.
• ROE of 2.05% against a P/B of 1.33 means investors are paying a premium for very weak equity returns.
• Piotroski F-score of 4/9 flags poor financial health and potential earnings quality issues.
• The P/E of 26.52 and PEG of 0.31 are misleading when profits are collapsing; the PEG is invalid with negative profit growth.

AI Analysis

At ₹128.10, Aeonx Digital is a small-cap IT enablement firm with a market cap of only ₹59 crore. When I see sales growth of 86.94%, I want to know where the profit is. The answer is disappointing: profit growth is -91.57%, and the latest quarter shows ₹16 crore of sales but a ₹1 crore net loss. This is not a business compounding intrinsic value. The P/E of 26.52 looks odd for a company whose earnings have almost disappeared; a low P/E is only a bargain if earnings are stable/sustainable. Here, trailing earnings are weak. The P/B of 1.33 also isn't attractive when ROE is 2.05%. Even if book value is ₹96.38, shareholders' capital is earning almost nothing. With ROCE of 9.78%, operating capital does better, but taxes/financing etc. still leave very little for equity. The Piotroski F-score of 4/9 reinforces my caution—financial health is mediocre. The dividend yield of 0.77% is negligible. The PEG of 0.31 is an appearance that uses the high sales growth perhaps; but profit growth is deeply negative, so I disregard it as an illusion. The stock has fallen from ₹242 to ₹128.10, which shows how fast the market can punish deterioration. Is there a moat? Not visible. IT-enabled services is a competitive industry, and at this size it's hard to command pricing power. I would not buy this as a value purchase simply because P/B is near 1; the underlying business returns are poor. I need evidence of margin improvement, positive net quarters, and higher ROE before considering it. This is a potential turnaround, not a proven investment. I'd rather wait for a durable recovery in profits than try to catch a falling knife.

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