Wherrelz IT (543436)

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

Key Financials

Strengths

• Revenue base of ₹13 Cr in the latest quarter is large relative to ₹7 Cr market cap, giving a low price-to-sales multiple.
• Profit decline of -11.54% is less steep than sales decline of -29.61%, hinting at some cost rationalization.
• Current price of ₹191.05 is above the 52-week low of ₹156.55, showing some market support.
• Asset-light software consulting model keeps fixed capital requirements low if operations stabilize.

Concerns

• P/E is 0.00 and latest quarter net profit is ₹0 Cr, so there is no earnings-based value.
• ROCE is -21.16%, indicating the business is destroying capital.
• Sales growth is -29.61% and Piotroski F-Score is 2/9, pointing to deteriorating operations and financial health.
• Book value, promoter holding, and debt/equity are N/A, leaving no data to compute a margin of safety.

AI Analysis

At ₹191, Wherrelz IT carries a market cap of just ₹7 crore. In the latest quarter it did ₹13 crore of sales but made zero net profit. That gives me no earnings to hang a valuation on. A P/E of 0.00 is not a bargain signal; it is an absence of profits. Graham taught me to pay for earnings and assets, not hopes. Here, return on capital employed is -21.16%, meaning the business is destroying capital, not creating it. Sales have shrunk 29.61%, and profits are down 11.54%. The Piotroski score of 2/9 is a red flag; such a weak score usually indicates deteriorating fundamentals. With book value, promoter holding, and debt/equity all unavailable, I cannot compute a margin of safety. It may be tempting to see a ₹7 crore market cap against ₹13 crore quarterly sales and think the stock is cheap. But a low price-to-sales ratio is meaningless if the company cannot turn revenue into profit. The 52-week range of ₹156.55 to ₹243.00 offers no comfort; the stock has fallen from its high and is trading closer to the middle. This looks like a possible turnaround, but turnarounds are only investable when you see concrete evidence: cost control, recovering margins, and a path to positive return on capital. None of that is visible in these numbers. A zero dividend yield and zero profit mean the shareholder is entirely dependent on price appreciation, which is speculation, not investment. I would keep Wherrelz IT on a watch list, but not in my portfolio until the operating fundamentals improve. In the words of Buffett: it is far better to buy a wonderful company at a fair price than a poor company at a wonderful price. This is not a wonderful company by any measure available to me.

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