DRA Consultants (540144)

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

Key Financials

Strengths

• P/E of 6.60 gives an earnings yield of roughly 15% if current profitability is sustainable.
• ROCE of 11.69% indicates reasonably efficient use of capital for a small consultancy.
• Latest quarter shows ₹9 Cr sales with ₹1 Cr net profit, implying a healthy ~11% net margin.
• Sales still grew 3.73% despite a small profit decline, showing modest business resilience.

Concerns

• Profit growth is negative at -2.02%, and revenue growth of only 3.73% means limited compounding.
• Piotroski F-Score of 4/9 suggests weak financial health and possible red flags in operations.
• Zero dividend yield means investors get no income while waiting for growth.
• Critical data — book value, ROE, debt/equity, and promoter holding — is unavailable, preventing a complete margin-of-safety analysis.
• Stock has moved from ₹11.55 to ₹47.25 in 52 weeks while profits fell, raising sentiment risk.

AI Analysis

At ₹47.25, DRA Consultants has a market cap of only ₹54 Cr and a trailing P/E of 6.60. On the surface, that looks like the sort of cigar-butt Graham might examine. But a value investor must first ask: what is the earning power, and how durable is it? The latest quarter shows ₹9 Cr of sales and ₹1 Cr of net profit, while the broader figures show sales growth of just 3.73% and profit declining 2.02%. That is not a compounding machine. In fact, over the last year the stock has raced from ₹11.55 to ₹47.25, while underlying profits fell. Mr. Market has become enthusiastic, but I remain wary. ROCE of 11.69% is acceptable, but not exceptional, and with zero dividend yield, the shareholder relies entirely on price appreciation. The Piotroski F-Score of 4/9 confirms weak financial health; this is not a pristine balance sheet. I also notice PEG of 1.77, which suggests that on a growth-adjusted basis the stock is not as cheap as the P/E alone implies. There are serious information gaps — book value, ROE, debt-equity, and promoter holding are unavailable. Graham would insist on knowing the asset backing and whether promoters have skin in the game. Without those, I cannot value the business with confidence. All I can say is this is a slow-growing, small consultancy with modest profitability and a low headline multiple. It might be a takeover candidate or a turnaround, but there's no evidence in the figures. In Buffett's words, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' DRA appears to be a fair-company-at-wonderful-price candidate at best, and the price may already reflect everything good. I would wait for more data and a margin of safety.

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