Globalspace Tech (540654)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹19.58 |
| Market Cap | ₹67.3 Cr |
| P/E Ratio | 252 |
| ROCE | 2.13% |
| ROE | 1.58% |
| Dividend Yield | 0% |
| Profit Growth | -46.27% |
| Debt/Equity | — |
| Sales Growth | 31.13% |
| 52-Week Range | ₹13.67 — ₹33.48 |
| Sector | IT - Software |
| Book Value | ₹14.66 |
Strengths
- Sales growth of 31.13% shows some revenue traction.
- Book value of ₹14.66 with P/B of 1.34 gives a measurable asset anchor.
- Price ₹19.58 is closer to the 52-week low of ₹13.67 than the high of ₹33.48, reducing valuation froth.
Concerns
- P/E of 252 and PEG of 8.10 imply expectations of profit recovery that current numbers do not support.
- Net profit fell 46.27%, and the latest quarter shows net profit of ₹0 Cr.
- ROE of 1.58% and ROCE of 2.13% are far below acceptable return thresholds.
- Piotroski F-Score of 4/9 suggests weak financial health, and debt/equity is not disclosed.
AI Analysis
At ₹19.58, Globalspace Tech is a small-cap software consulting firm with a market cap of ₹67 Cr. My first question is always: what do I own? A competitive business should earn good returns on capital. Here ROE is just 1.58% and ROCE only 2.13%, levels far below any threshold I would demand. Book value is ₹14.66, so the market is paying a 34% premium for a company earning almost nothing on that book. The latest quarter is blunt: sales of ₹17 Cr, net profit of ₹0 Cr. Annual sales grew 31.13%, but profit dropped 46.27%. That is growth without profit, and to me it has no value. A P/E of 252 and a PEG of 8.10 imply the market expects a miraculous margin recovery. I see no evidence of a moat in software consulting; these numbers suggest a commodity-like business struggling to translate revenue into owners' earnings. The Piotroski score of 4/9 reinforces my caution. Dividend yield is zero, so the investor gets no cash while waiting. Debt-to-equity is not disclosed, so I cannot judge leverage risk — that itself is a red flag for Graham. The stock trades at 1.34 times book and well below its 52-week high, so maybe the bad news is partly priced in. But a cheap price cannot compensate for a business that doesn't earn. I would need to see sustained improvement in margins and positive net profit before treating this as a serious candidate. For now, it remains a possible turnaround, not an investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer