Quint Digital (539515)

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

Key Financials

Strengths

• Sales growth of 268% shows strong top-line momentum and expanding market reach.
• Piotroski F-Score of 6/9 indicates moderate financial health despite other weaknesses.
• Latest quarter net profit of ₹39 Cr demonstrates some earnings capacity, even if possibly non-operating.
• Stock trading near its 52-week high reflects positive market sentiment.

Concerns

• P/E of 828.77 and PEG of 5.98 are extreme, pricing in extraordinary future growth.
• ROE of 3.45% and negative ROCE of -0.57% highlight poor returns on capital.
• Profit growth of 9.32% trails sales growth by a wide margin, suggesting margin compression or one-off earnings.
• Zero dividend yield and undisclosed promoter/debt data reduce transparency and buffer for investors.

AI Analysis

Quint Digital shows all the signs of a growth story caught too early. Sales grew 268%, and the stock sits at its 52-week high of ₹90.31. But as value investors, we don't buy stories; we buy businesses. The numbers here are contradictory. A P/E of 828.77 means the market capitalizes the company at 829 times its trailing earnings. That's not just expensive; it's fragile. For that multiple to be justified, profits would need to explode. Yet profit growth stands at only 9.32%, and return on equity is a weak 3.45%. The negative ROCE of -0.57% means the company's core operations are not even covering the cost of capital. The latest quarter's net profit of ₹39 Cr on revenue of ₹31 Cr is a red flag: where is the profit coming from? It's likely exceptional items or other income, not sustainable operations. In contrast, book value is ₹30.92, so I'd be paying 2.92 times book for a business earning less than 4% on that book. The zero dividend yield offers no buffer. Piotroski F-score of 6 is moderate, but with promoter holding and debt/equity not disclosed, I cannot verify the integrity of the balance sheet. Graham taught us to demand a margin of safety. At this price, there is none. The PEG ratio of 5.98 says the growth demanded by the price is not supported by actual earnings growth. I would watch this from the sidelines until the company proves it can convert its massive sales growth into sustainable, high-return profits, and until it lowers this astronomical valuation to something nearer intrinsic value.

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