ABM Knowledge (531161)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹151.25 |
| Market Cap | ₹305.59 Cr |
| P/E Ratio | 39.06 |
| ROCE | 9.55% |
| ROE | 6.22% |
| Dividend Yield | 0.56% |
| Profit Growth | -45.3% |
| Debt/Equity | — |
| Sales Growth | 8.85% |
| 52-Week Range | ₹164.2 — ₹325 |
| Sector | IT - Software |
| Book Value | ₹107.37 |
Strengths
- Sales still grew 8.85%, so the business has not lost its top-line momentum.
- Book value of ₹107.37 per share provides a tangible asset base against a market price of ₹151.25.
- Latest quarter remains profitable at ₹31 Cr sales and ₹3 Cr net profit, avoiding a loss-making situation.
- P/B of 1.41 is not excessive for a software products company if profitability ever recovers.
Concerns
- Profit growth collapsed by 45.30%, and ROE is just 6.22%, indicating weak capital efficiency.
- P/E of 39.06 and PEG of 4.41 are expensive for a business with falling earnings.
- Piotroski F-Score of 4/9 reflects poor fundamental health.
- Current price of ₹151.25 is below the reported 52-week low of ₹160, showing severe negative momentum, and promoter holding is undisclosed.
AI Analysis
Let me begin with the balance sheet. ABM Knowledge has a book value of ₹107.37 per share and the stock trades at ₹151.25, so I am paying 1.41 times book. That sounds reasonable until I look at returns. The company earned only 6.22% on equity and 9.55% on capital. As Graham would say, a good business should generate far more on its tangible assets than this. Sales grew 8.85%, but profits collapsed by 45.30%. The latest quarter shows ₹31 Cr in revenue and just ₹3 Cr in net profit. That tells me the top line is still alive, but the earnings engine is badly damaged. At ₹306 Cr market cap, the market is paying 39.06 times earnings for a business whose ROE is below what I can get from an index fund over time. The Piotroski score of 4 out of 9 reinforces my unease. The PEG of 4.41 promises growth at a very high price, but the profit trend points the other way. The stock has fallen from a 52-week high of ₹325 to ₹151.25, below the reported 52-week low of ₹160, and the dividend yield is only 0.56%. Mr. Market is already disappointed. I cannot call this a wonderful company at a wonderful price. A potential turnaround would require margins to recover and capital returns to move toward double digits. Until I see evidence of that, I prefer to sit on the sidelines. Price is what you pay; value is what you get. Right now, I am not convinced the value is here.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer