Focus Business (543312)

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

Key Financials

Strengths

• Sales growth of 17.99% shows steady revenue expansion
• Profit growth of 252.94% reflects strong recent earnings momentum
• ROCE of 15.47% indicates acceptable capital efficiency
• Piotroski F-Score of 7/9 suggests decent fundamental health on available metrics
• PEG ratio of 0.57 implies growth may justify the earnings multiple if sustained

Concerns

• P/E of 77.19 is very stretched for a microcap with ₹41 Cr market cap
• Current price ₹83.72 is below the 52-week low of ₹106.00, signaling severe market distrust
• No data on book value, ROE, debt/equity, or promoter holding prevents thorough balance sheet and governance analysis
• Latest quarter net profit of only ₹1 Cr on ₹13 Cr sales makes the 253% profit growth appear fragile and base-effect driven

AI Analysis

When I look at Focus Business, I see a story that would make Graham reach for his investor's checklist before his wallet. The price-to-earnings ratio of 77.19 is staggering for a company with a market cap of just ₹41 Cr. Yes, profit growth of 252.94% is eye-catching, but starting from a tiny base—latest quarter net profit of only ₹1 Cr on sales of ₹13 Cr—means one bad quarter can wipe out that narrative. The company is growing sales at 18%, which is respectable, and the Piotroski F-Score of 7/9 suggests solid fundamentals on the metrics available. ROCE of 15.47% is decent, but with no book value, no debt-to-equity, no promoter holding, and no ROE disclosed, I'm flying blind on the two most important safeguards: balance sheet strength and owner alignment. The PEG ratio of 0.57 supposedly makes the growth look cheap, but that's only true if the 253% growth is sustainable—a dubious assumption for a microcap software firm. More troubling, the current price of ₹83.72 sits below the 52-week low of ₹106.00. The market is telling me something, and I should listen. 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.' Here, I have a fair company at an uncomfortable price, with too many missing data points. In the absence of transparency, I'll stay on the sidelines. Let the other fellow take the risk.

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