Starcom Info. (531616)

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

Key Financials

Strengths

• Small market cap of ₹36 Cr means a modest revenue revival could have an outsized impact on per-share value.
• Reported ROE of 30.65% suggests the company earned strong returns on equity in the past, though current losses contradict this.
• The stock is trading roughly 37% below its 52-week high of ₹111.16, indicating some speculative enthusiasm has cooled.
• Being in software/consulting, the business scope can be asset-light if operations restart and orders return.

Concerns

• Latest quarter sales of ₹0 Cr with a net loss of ₹-2 Cr means the business is currently not generating revenue.
• Sales growth of -62.92% and profit growth of -189.55% show severe deterioration.
• Piotroski F-Score of 2/9 and ROCE of 0% reflect weak financial fundamentals.
• No book value, debt/equity, promoter holding, or dividend data provided, leaving inadequate transparency for a microcap investment.

AI Analysis

First, I want to understand what I am buying. Starcom Info has a market cap of only ₹36 Cr, yet the latest quarter shows sales of ₹0 Cr and a net loss of ₹-2 Cr. That is not a business in health; that is a business in distress. Sales growth is down 62.92%, and profit growth is down 189.55%. A P/E of zero is meaningless because there are no earnings to capitalise. The Piotroski F-Score of 2/9 reinforces my concern: on nine fundamental tests, the company fails most of them. I am also alarmed by the reported ROE of 30.65% while profits are deeply negative. Either the number is stale, or it does not reflect current reality. ROCE is zero. There is no dividend to reward a patient shareholder, and no book value or debt-to-equity data to assess the balance sheet. Promoter holding is not known, so I cannot see whether management's interests are aligned with mine. The stock has fallen from a 52-week high of ₹111.16 to ₹69.77, but it is still well above the low of ₹44.59. Where is the margin of safety? I do not see it. Graham taught me to buy with a margin of safety, and this has no earnings, no cash flow visibility, no transparent balance sheet, and no moat. It may someday turn around, but I cannot invest based on hope. I need to see revenue return, a path to profits, and credible financial disclosures. Until then, this is a pass. The business must prove it can survive before I will value it.

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