Telogica (532975)

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

Key Financials

Strengths

• Revenue growth of 138.82% shows strong sales traction in a competitive telecom equipment space.
• ROCE of 22.73% suggests decent operational capital efficiency if the latest numbers are maintained.
• Latest quarter sales of ₹10 Cr on a ₹66 Cr market cap gives a meaningful revenue base for a small company.
• ROE of 12.40% is positive and indicates some existing return to shareholders.

Concerns

• Profit growth is negative at -12.50%, and latest quarter net profit is ₹0 Cr, so rising sales are not converting into earnings.
• Valuation is extreme: P/E of 65.19 and P/B of 18.58, with price ₹21 versus book value of just ₹1.13.
• Piotroski F-Score of 4/9 signals weak financial health and deteriorating earnings quality.
• No dividend, no promoter holding data, and unavailable debt/equity leave shareholders with no income cushion and limited transparency.

AI Analysis

At ₹21, Telogica is a tiny ₹66 crore telecom-equipment business selling at 65 times earnings and 18.6 times book value, while its book value is just ₹1.13. Let me be blunt: no margin of safety. Benjamin Graham taught me to pay cents for a rupee of asset; here the market asks me to pay ₹21 for ₹1.13 of book. The 138.82% sales growth is eye-catching, but I invest in earnings, not revenue. Profit growth is down 12.50%, and the latest quarter shows sales of ₹10 crore with net profit of exactly ₹0 crore. A business that can produce zero profit on growing revenue does not yet deserve to be called a compounding machine. ROE of 12.40% and ROCE of 22.73% are respectable on paper, but at this price those returns are already priced in many times over. The Piotroski score of 4/9 is a red flag; it tells me financial health is below average. There is no dividend yield to compensate while I wait. The PEG ratio of 0.47 might tempt growth investors, but with profit falling 12.50%, that ratio is built on sand. I do not have promoter holding data, and debt/equity is unavailable, so I cannot judge who is aligned with me or how leveraged the balance sheet is. In the telecom equipment space, technology changes fast and customers have power; I see no durable moat here. This looks like a speculative growth story, or a possible turnaround, not a value purchase. If the company can convert its new sales into consistent profits and build a stronger balance sheet, I might watch it from a distance. But at ₹21, I need a much lower price or much better evidence of earnings power before I part with my money. As Mr. Buffett says, price is what you pay, value is what you get. Here, the value is not visible.

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