Bodhtree Consul. (539122)

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

Key Financials

Strengths

• Top-line momentum: sales grew 38.12%, indicating business demand still exists.
• Latest quarter positive: ₹6 Cr sales converted into ₹1 Cr net profit, giving a small base of profitability.
• Positive book value of ₹6.76 means there is some tangible equity, though the market price is far above it.
• Small market cap of ₹130 Cr leaves room for scalable growth if the turnaround actually executes.

Concerns

• Earnings collapse despite growth: profit fell 52.54% while sales rose 38.12%, showing severe margin deterioration.
• Extreme valuation: P/E of 102.76, P/B of 11.23, and PEG of 2.70 leave no margin of safety against book value of ₹6.76.
• Weak operational returns: ROE is only 3.59% and ROCE is negative at -8.10%, so operating capital is not being rewarded.
• Poor financial health score: Piotroski F-Score of 3/9 and zero dividend yield offer limited downside protection.

AI Analysis

Every investment starts with a price, but I buy businesses, not tickers. Here I am asked to pay ₹75.90 for one share of Bodhtree Consul, or ₹130 Cr for the whole company. What do I get? A business whose profits fell by 52.54% last year, despite a 38.12% increase in sales. That is the first warning sign. In a healthy IT services company, revenue growth should ultimately flow to earnings; here it is being swallowed by costs. The return on equity is just 3.59%, and the return on capital employed is negative at -8.10%. The company is not earning its cost of capital. The latest quarter shows ₹6 Cr of sales and ₹1 Cr of net profit, which is encouraging, but one quarter does not justify a P/E of 102.76 or a P/B of 11.23. Book value is only ₹6.76. Piotroski's F-score is 3 out of 9, so the financial health is poor. A zero dividend means the investor must rely entirely on capital gains. The stock has already moved from ₹13.05 to ₹75.90, a 481% rally. A PEG of 2.70 on sales growth tells me the good news is more than priced in. Graham said to use the margin of safety. Here, the market price is far above any conservative estimate of intrinsic value. This has the look of a speculative turnaround: high growth ambitions, low current returns, and a stock price that has run far ahead of the fundamentals. I cannot call it a fast grower because earnings are falling. It may be a turnaround one day, but a value investor waits for evidence. That evidence is not in these numbers. I will pass.

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