Blue Cloud Soft. (539607)

FairStock Score: 52/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Buffett's glasses and Graham's caution here. Blue Cloud Soft is a software-products company with spectacular reported growth: sales up 80.90%, profit up 97.66%, latest quarter sales ₹265 Cr and net profit ₹19 Cr. ROE 61.07% and ROCE 37.07% tell me the business is producing high returns on capital, which often hints at an efficient, asset-light model. Piotroski F-Score 7/9 adds confidence that accounting signals are mostly healthy. But I cannot call that a durable moat from figures alone. I would need evidence of pricing power, recurring revenue and customer stickiness; the data doesn't provide it. Valuation is the real test. At ₹234.50, market cap ₹5,658 Cr and P/E 27.07, the earnings multiple is not outrageous if growth persists. PEG 0.30 supports that growth is cheap relative to the P/E. Yet P/B is 203.91 with book value ₹1.15, so there is virtually no asset-based downside protection. The stock sits at its 52-week high, versus a low of ₹16.51, so Mr. Market is euphoric. No dividend, no disclosed debt/equity, no promoter holding, and FairStock Score 52/100 (MIXED) leave gaps. Latest quarterly net margin is only about 7.2%, so profit growth must be watched closely. This is not a Graham bargain; it is a fast grower demanding execution. I'd wait for margin of safety, balance-sheet clarity, and proof that high ROCE and growth are durable before paying up.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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