Response Info. (538273)

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

Key Financials

Strengths

• P/E of 14.35 is moderate if current earnings stabilize
• ROCE of 17.05% suggests some underlying operating efficiency before interest and tax
• Small market cap and software products niche could offer scalable upside if demand recovers
• Trading near the top of the 52-week range indicates the market is pricing in a potential recovery

Concerns

• Sales growth is -17.62% and profit growth is -9.26%, with latest quarter net profit at ₹0 Cr
• ROE of 0.54% against P/B of 4.75 means paying a rich multiple for near-zero shareholder returns
• Piotroski F-score of 3/9 points to weak overall financial health
• D/E is N/A, promoter holding is N/A, and FairStock score is insufficient data—lack of transparency in a small cap

AI Analysis

At ₹71, Response Info. wears a market cap of just ₹58 crore. On the surface, a P/E of 14.35 does not look reckless. But a value investor must ask whether the 'E' is real and durable. Sales are down 17.62%, profit is down 9.26%, and the latest quarter delivered net profit of ₹0 crore. That is not a growing business; it is one fighting for air. The Piotroski F-score of 3/9 reinforces my caution: weak profitability and likely deteriorating fundamentals. I pay ₹71 for ₹14.94 of book value, a P/B of 4.75, leaving no margin of safety. Return on equity is just 0.54%, so shareholders are earning almost nothing on their equity. The 17.05% ROCE looks attractive, but with debt/equity not disclosed, I cannot trust that number. It may be flattered by leverage or a small capital base. Meanwhile, the stock has travelled from ₹20 to ₹71 in 52 weeks. A share price tripling while sales shrink and profits disappear is Mr. Market's mood, not business value. There is no dividend to reward waiting. Promoter holdings are unknown, and the FairStock score says insufficient data—never a good sign for a small cap. Graham taught me to buy with margin of safety and evidence of earning power. This has neither today. It could become a turnaround if software product demand returns and quarterly profit turns positive, but I would need proof in the numbers, not hope in the price chart. For now, this is a possible turnaround at a demanding price, not a business I would own.

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