GTT Data (530457)

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

Key Financials

Strengths

• Latest quarter revenue of ₹42 crore shows meaningful top-line activity.
• Reported 818.30% sales growth indicates a significant expansion in revenue, albeit from a low base.
• The stock has an active trading range of ₹43.02 to ₹101.80, showing market interest and liquidity.
• With a small book value of ₹3.32 per share, even a modest absolute profit recovery could materially change the story.

Concerns

• Latest quarter net loss of ₹2 crore and profit growth of -83.02% show no earnings support.
• ROE of -80.69% and ROCE of -15.35% indicate severe capital destruction.
• P/B of 21.43 against a book value of ₹3.32 leaves almost no margin of safety.
• Piotroski F-score of 3/9, zero dividend, and missing promoter details point to weak financial transparency and health.

AI Analysis

Let's look at GTT Data the way Graham would: a stock is an ownership interest in a business, and the business must earn a return on capital. GTT Data has a market cap of ₹139 crore, yet the book value is only ₹3.32 per share. That means I am paying ₹71 for assets worth ₹3.32, a price-to-book ratio above 21. This violates the central discipline of value investing — margin of safety. The income statement is worse. Latest quarter sales are ₹42 crore, but the company still lost ₹2 crore. Return on equity is minus 80.69% and return on capital employed is minus 15.35%, so every rupee retained is shrivelling. A reported P/E of 0.00 is not a sign of cheapness; it reflects an absence of positive earnings. The 818.30% sales growth looks dramatic, but profit growth is minus 83.02%, exactly the kind of revenue-heavy, profit-light story that usually leads shareholders astray. The Piotroski F-score of 3 out of 9 reinforces the weak financial health. With no dividend and no promoter disclosure, I cannot judge alignment or what owners actually think of the business. The 52-week range from ₹43 to ₹102 and current price of ₹71 suggests speculation, not intrinsic valuation. Perhaps this is a turnaround, and the revenue jump hints at some new business. But Graham's first rule is to protect the downside. Here, the downside is large: a small erosion in equity, continued losses, or a missed expectation could crush the stock. I prefer a proven franchise with a durable moat, consistent profits, and a margin of safety. GTT Data offers none of those today. Until it demonstrates sustained profitability and generates real returns on capital, this is a pass.

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