Hypersoft Tech. (539724)

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

Key Financials

Strengths

• Revenue growth of 1,150% and profit growth of 123% show very rapid expansion, albeit from a tiny base.
• Piotroski F-Score of 7/9 points to reasonably sound recent financial health.
• ROCE of 20.65% indicates decent capital efficiency.
• PEG ratio of 0.06 suggests the market is pricing in far lower growth than recent reported growth.

Concerns

• Extremely small market cap of ₹6 Cr makes the stock highly illiquid and speculative.
• P/E of 40.22 and P/B of 69.05 leave no margin of safety.
• Latest quarter net profit is ₹0 Cr, raising doubt about earnings quality despite headline growth.
• Current price of ₹15.19 sits below the reported 52-week range of ₹53.80–₹150.30, indicating data inconsistency or a severe de-rating.

AI Analysis

If I were to buy a share of Hypersoft Tech, I would be buying a business with a market cap of just ₹6 crore—so small that even one large order could move the needle, and one cancelled order could break it. The statistics scream growth: sales up 1,150%, profits up 123%, and a PEG of 0.06. But Graham taught me to weigh figures with scepticism. The latest quarter shows sales of only ₹2 crore and net profit of ₹0 crore. So the earnings that justify a P/E of 40.22 are negligible in absolute rupee terms. A 1,150% growth rate from a microscopic base is not evidence of a durable franchise; it is arithmetic on a rounding error. Book value is ₹0.22 per share, yet the stock trades at ₹15.19—69 times book. ROE of 137% looks extraordinary, but it is the natural result of dividing tiny profits into a tiny equity base. ROCE of 20.65% is respectable, and the Piotroski F-score of 7/9 is a small point in favour. But none of these tells me whether Hypersoft has pricing power, a competitive moat, or the ability to earn high returns on a growing capital base. There is no dividend, promoter holding is undisclosed, and the reported 52-week range of ₹53.80–₹150.30 does not even include the current price—a red flag about data quality or liquidity. As Buffett says, risk comes from not knowing what you are doing. Here, even the basic numbers are incomplete. I cannot value a business that may stop growing, reverse direction, or become untradeable. High growth is seductive, but price is what you pay. At 40 times earnings and 69 times book, I am paying a fortune for a story, not a margin of safety. I will pass.

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