Ram Info (530951)

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

Key Financials

Strengths

• Revenue grew 89.10% and profit grew 290.91%, showing strong recent momentum.
• PEG of 0.11 suggests the market is not fully pricing in the current growth rate.
• Piotroski F-Score of 7/9 points to decent financial health and improving fundamentals.
• P/B of 1.74 relative to book value of ₹71.87 offers some asset backing.
• Trading at the top of its 52-week range reflects strong investor demand.

Concerns

• ROE of 3.49% and ROCE of 4.21% are far too low for a quality compounder.
• No dividend means investors rely entirely on future growth and capital gains.
• Latest quarter absolute figures are tiny — sales ₹8 Cr, profit ₹1 Cr — making high growth rates unreliable.
• Missing promoter holding and debt/equity data makes it hard to assess governance and leverage.

AI Analysis

Ram Info is a small IT-enabled services company, and the growth numbers immediately grab your attention. Sales up 89.10%, profits up 290.91%, and a PEG of 0.11 — it looks like a Fast Grower at a reasonable price. But Graham taught me to look behind the percentages. The latest quarter has sales of just ₹8 Cr and profit of ₹1 Cr. When the base is that small, growth rates can be spectacular but fragile. More troubling is ROE of only 3.49% and ROCE of 4.21%. A business that earns less than 5% on capital is not a wonderful franchise; it is a borderline capital user. At ₹125.40, the market cap is ₹95 Cr and the P/E is 20.25. That gives an earnings yield of under 5%, with no dividend. So I am being paid almost nothing to wait, and I am asked to believe the recent growth will continue. The P/B of 1.74 is not excessive, and book value of ₹71.87 gives some downside cushion. The Piotroski score of 7/9 is encouraging and suggests improving financial health. But promoter holding is N/A, and debt/equity is N/A, so I cannot judge insider alignment or balance-sheet risk properly. The stock is at the top of its 52-week range, up from ₹44.90. That is a momentum story, not a margin-of-safety story. I would want to see several more quarters of absolute-level profits, better return ratios, and clearer disclosures before committing capital. A low PEG only matters if growth is durable; so far, this is a promising small company, not yet a proven compounder.

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