Indo-City Info. (532100)

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

Key Financials

Strengths

• Sales growth of 111.32% and profit growth of 195% show strong momentum.
• Latest quarter sales of ₹4 Cr and net profit of ₹1 Cr indicate improved profitability.
• P/B of 1.28 with book value of ₹10.87 provides some downside support.
• Piotroski F-Score of 6/9 suggests improving financial fundamentals.
• PEG of 0.14 appears undemanding if current growth persists.

Concerns

• ROE of only 4.44% and ROCE of -10.22% signal poor returns on equity and capital.
• P/E of 22 is rich for a company with such low profitability and no dividend.
• Promoter holding and debt/equity data are not disclosed, leaving governance and leverage risks unknown.
• Microcap size of ₹15 Cr with volatile quarterly figures; growth may be from a low base.

AI Analysis

At ₹13.95, Indo-City Info is a microcap story, priced at 22 times earnings with a market cap of only ₹15 Cr. The headline numbers are electrifying — sales up 111% and profit up 195% — and the latest quarter shows ₹4 Cr revenue with ₹1 Cr net profit. But Graham taught me to weigh figures, not headlines. A 4.44% ROE and a negative -10.22% ROCE tell me this business does not yet earn attractive returns on the capital it employs. The 1.28 price-to-book offers some asset support, but book value of ₹10.87 is not a margin of safety if returns stay this weak. The PEG of 0.14 appears cheap only if 111% growth is durable; small software product companies often grow in irregular spurts, and a ₹15 Cr market cap can be whipsawed easily. There is no dividend to reward patience, and promoter holding is not disclosed, which is a red flag for minority shareholders in India. The Piotroski score of 6 out of 9 suggests improving fundamentals, but not a clean bill of health. I would not call this a great business; it is a small, fast-growing enterprise with poor capital efficiency and an unproven moat. At 22 times earnings, the market is already paying for continued perfection. If I owned it, I would watch every quarter for cash conversion and margin quality. If I didn't, I would let the price come down or the ROCE turn positive before treating it as a serious value investment. Growth is exciting, but as Buffett says, price is what you pay; value is what you get. Right now, I don't see enough value evidence.

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