Artefact Project (531297)

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

Key Financials

Strengths

• P/B of 0.86 means buying at roughly a 14% discount to stated book value.
• P/E of 6.09 implies an earnings yield around 16%.
• ROCE of 13.45% and ROE of 11.75% show reasonably capital-efficient operations.
• Profit grew 35.48% despite a sales decline, indicating margin discipline.
• Piotroski F-Score of 6/9 points to moderate financial health.

Concerns

• Top-line is shrinking at -8.05%, so profit growth is not backed by revenue expansion.
• Debt/Equity is not disclosed, leaving leverage and financial risk unclear.
• Promoter holding is not available, creating a governance blind spot.
• Microcap size of ₹53 Cr with only a 0.83% dividend yield raises liquidity and volatility concerns.

AI Analysis

At ₹72.89, with book value of ₹84.97, I am paying only 86 paise for every rupee of net worth. That is a bargain-table look, and the P/E of 6.09 gives an earnings yield near 16%, well above the risk-free rate. But a cheap price is not an excuse to ignore the business. Artefact Project is a microcap consulting company with a ₹53 Cr market cap, and its sales have fallen 8.05% in the latest year. Profit, however, rose 35.48%. That is a red flag for quality: this is margin expansion, not customer demand. The latest quarter shows ₹7 Cr revenue and ₹2 Cr profit, meaning roughly a 28% net margin — possible for consulting, but quarterly margins can be lumpy and may not persist. ROE of 11.75% and ROCE of 13.45% are respectable, and a Piotroski F-Score of 6/9 suggests the balance sheet is not deteriorating. Still, I cannot fully assess risk because debt/equity is missing and promoter holding is not available. Graham always insisted on knowing who runs the company and how much debt it carries. The dividend yield of 0.83% is too small to compensate for waiting. The PEG of 0.17 looks ridiculous, but it is built on the 35% profit jump. With sales shrinking, I would not project that growth forward. If revenues stabilise and margins hold, this could become a genuine turnaround and re-rate. Until then, I treat it as an asset play selling below book value. I need a bigger margin of safety in a microcap with thin disclosure.

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