Ace Soft. Exp. (531525)

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

Key Financials

Strengths

• Sales growth of 118.65% and profit growth of 40.32% indicate strong demand momentum.
• Piotroski F-score of 7/9 suggests solid recent financial health.
• PEG of 0.60 implies the current P/E may be supported if earnings growth is sustained.
• Latest quarter is profitable: ₹2 Cr net profit on ₹15 Cr revenue.
• At ₹354 Cr market cap, the business is still small, leaving room for high growth if execution continues.

Concerns

• P/E of 48.04 and P/B of 21.12 are far above value-investing comfort levels.
• ROE of 10.24% and ROCE of 9.97% are mediocre; the valuation assumes a major improvement.
• Profit growth of 40.32% lags sales growth of 118.65%, suggesting margin dilution or rising costs.
• No dividend, no disclosed promoter holding, and no debt/equity data limit the ability to judge governance and financial risk.

AI Analysis

Looking at Ace Soft, I see a small-cap software products company with exceptional top-line momentum: sales grew 118.65% and profits grew 40.32%. The Piotroski F-score of 7 suggests decent recent fundamentals, and a PEG of 0.60 looks interesting if that growth continues. But I must pause. At ₹327.60, the market capitalisation is ₹354 Cr, while trailing earnings, based on a P/E of 48.04, are only about ₹7.4 Cr. That is not a margin-of-safety price. Book value is ₹15.51, so I am paying 21.12 times book for a business earning just 10.24% ROE. That is a poor trade-off. A company earning 10% on equity cannot justify 21 times book unless returns improve dramatically. The latest quarter shows ₹15 Cr sales and ₹2 Cr profit, which annualises to roughly ₹60 Cr and ₹8 Cr. So even the current run-rate supports a demanding valuation. Zero dividend means the shareholder is relying entirely on price appreciation. ROCE is under 10%, so I do not see evidence of an economic moat or pricing power. Debt/equity is not available, promoter holding is not disclosed, and the FairStock score is marked insufficient data. These gaps trouble me. In a fast-growing small cap, I need to know who controls the business and how leveraged it really is. The 52-week range of ₹107.10 to ₹378.80 shows violent market mood swings. Graham taught me to buy with a margin of safety; this price has none. This is a fast grower, but I would wait for either a far lower price or proof of durable high-ROE, high-cash-flow economics.

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