Saven Tech. (532404)

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

Key Financials

Strengths

• Revenue growth of 19.42% shows business is still expanding.
• ROE of 15.59% and ROCE of 17.99% suggest decent capital efficiency.
• P/E of 12.89 and dividend yield of 4.04% provide some valuation cushion.
• Latest quarter remained profitable with ₹1 Cr net profit on ₹5 Cr sales.

Concerns

• Profit growth fell by 30.26% despite sales growth, signaling margin pressure.
• Piotroski F-Score of 4/9 suggests weak financial health.
• Very small scale makes the business vulnerable to client concentration and volatility.
• Price is at the 52-week high of ₹55.84, leaving limited margin of safety.

AI Analysis

At ₹55.84, Saven Tech is a tiny ₹61 crore IT-enabled services company. Graham would demand evidence of earning power, not just a low P/E. The P/E of 12.89 looks reasonable, and book value of ₹18.74 supports a P/B of 2.98. ROE of 15.59% and ROCE of 17.99% show decent capital deployment, and a 4.04% dividend yield gives the shareholder a tangible return while waiting. But I cannot ignore the recent damage: sales grew 19.42%, yet profits fell 30.26%. That tells me either costs are rising, pricing is weak, or some one-off issue struck. The latest quarter alone, ₹5 crore sales and ₹1 crore net profit, is very small; at this size, one bad client or delayed project can swing the entire picture. The Piotroski score of 4/9 reinforces my caution, and with the price sitting at the top of its 52-week range, ₹55.84, I am being asked to pay full price for a business whose earnings are moving backwards. There is no margin of safety. The PEG of 0.66 is seductive only if growth resumes, but profits declined, so I treat it as a calculation, not a conclusion. This is not the kind of wonderful business I want at a fair price. It is a small services firm that may become a turnaround if management can rekindle profitability. For an Indian retail investor, the missing promoter holding data makes independent verification essential. I would not buy today. I would wait for evidence that profit growth has returned, for the Piotroski score to improve, and for the balance sheet debt position to become known. If earnings stabilize and the price retreats toward a more conservative valuation, Saven Tech could become interesting.

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