Logica Infoway (543746)

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

Key Financials

Strengths

• Profit growth of 98.15% shows strong near-term earnings momentum
• PEG ratio of 0.46 suggests the stock may be undervalued relative to its growth rate
• Piotroski F-Score of 7/9 indicates solid fundamental health
• Sales growth of 13.94% demonstrates consistent business expansion
• Trading at 52-week high reflects positive market sentiment

Concerns

• Extremely thin net margin (~1% in latest quarter) leaves little room for error
• Critical data missing: ROE, book value, debt-to-equity, and promoter holding
• P/E of 26.03 demands high future growth to justify valuation
• Specialty retail is highly competitive with limited pricing power and moat

AI Analysis

When I look at Logica Infoway, I see a specialty retailer that has delivered a remarkable profit jump of 98.15% on a sales growth of just 13.94%. That is the kind of operating leverage that catches any value investor's eye. But I must ask: is this durable, or a one-time benefit? The trailing P/E of 26.03 is not cheap, though a PEG of 0.46 suggests the market is not yet pricing in sustained growth. The ROCE of 14.30% is acceptable but not spectacular. The Piotroski F-Score of 7/9 tells me the financial health is decent, but I am troubled by what I do not know. There is no book value, no ROE, no debt-to-equity, no promoter holding data. In Graham's world, undisclosed numbers are a red flag. The latest quarter shows ₹587 crore in sales but only ₹6 crore in net profit — a net margin barely above 1%. That is a razor-thin buffer. Retail is a competitive, low-moat business. Without clear evidence of pricing power or efficient working capital, I cannot call this a wonderful business. The stock sits at its 52-week high of ₹255.15, so the market is optimistic. I would want more data, a wider margin of safety, and proof that margins can expand before committing serious capital. For now, it is a fast grower worth studying, not a stalwart I can trust blindly.

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