CLIO Infotech (530839)

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

Key Financials

Strengths

• Trades at a 43% discount to book value with P/B of 0.57 and book value of ₹10.46.
• Piotroski F-Score of 7/9 suggests the financial health is not deteriorating.
• Sales growth of 9600% and profit growth of 1000% show sharp momentum, though off a tiny base.
• Market cap of only ₹7 Cr makes this a micro-cap where a small absolute profit improvement can have a large impact.
• Current price is well below the 52-week high of ₹10.59, leaving some room for recovery if business quality improves.

Concerns

• ROE of 2.61% and ROCE of 0.50% indicate the company is earning almost nothing on its capital and book value.
• Latest quarter shows net profit of ₹0 Cr, so visible earnings power is negligible despite a P/E of 27.74.
• The 9600% sales and 1000% profit growth are from a minuscule base; PEG of 0.03 is misleading and not evidence of durable growth.
• Dividend yield is 0.00%, promoter holding is N/A, and FairStock Score is INSUFFICIENT_DATA, raising transparency concerns.

AI Analysis

At ₹5.98, CLIO Infotech is a tiny ₹7 crore market cap software-products company trading at only 0.57 times book value, while book value stands at ₹10.46. In Graham's language, buying ₹10.46 of equity for ₹5.98 offers a margin of safety on the balance sheet. But I must not stop at the balance sheet; a wonderful purchase is more than a discounted asset. The business earns a bare 2.61% ROE and 0.50% ROCE. That means the assets inside the business are generating almost no return. A low price-to-book can be a value trap if the book value is not able to compound. The headline sales growth of 9600% and profit growth of 1000% look extraordinary, but with ₹2 crore sales and ₹0 crore net profit in the latest quarter, the absolute numbers are tiny. A huge percentage on a minuscule base is not a moat; and a PEG ratio of 0.03 is meaningless when earnings are near zero and the P/E is already 27.74. Piotroski F-Score of 7/9 does offer some comfort that the financial position is not deteriorating, but good financial health alone isn't enough. There is no dividend yield, promoter holding is not available, and the company's own score warns of insufficient data. I would call this an asset play, not a compounder. The investment thesis rests on whether the book value is real, whether the returns on capital improve, and whether the recent revenue momentum turns into actual profit. At ₹5.98 there may be downside protection, but I need proof that the business can earn a decent return on that ₹10.46 book value before getting excited.

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