AccelerateBS Ind (543938)

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

Key Financials

Strengths

• ROCE of 22.18% suggests efficient use of capital.
• Piotroski F-Score of 7/9 indicates generally sound financials.
• Latest quarter net margin is ~33% (₹1 Cr profit on ₹3 Cr sales), showing pricing power or niche focus.
• Strong price momentum from ₹67 to ₹335 reflects significant market interest.
• PEG ratio of 0.14 makes it superficially attractive if the high profit growth is sustainable.

Concerns

• P/E of 41 with a market cap of only ₹125 Cr offers little margin of safety.
• Sales growth of just 4.01% against profit growth of 569.23% suggests the profit jump may be a low-base or one-off effect.
• Tiny absolute scale—quarterly sales of ₹3 Cr and net profit of ₹1 Cr—makes the business vulnerable to client concentration and competitive shocks.
• Missing data on book value, ROE, promoter holding, and debt/equity limits a proper Graham-style quality check.

AI Analysis

Let me start with what I see. AccelerateBS is a tiny software consulting firm with a market cap of ₹125 Cr. At ₹335, the stock trades at 41 times earnings. That is not a bargain by any Graham measure. The company earned roughly ₹1 Cr in the latest quarter on sales of ₹3 Cr—a strong 33% net margin. But when I look at the full picture, sales grew only 4.01%, while profit jumped 569.23%. In my experience, when profits leap while sales barely move, I ask whether the margins are sustainable or whether a one-time event flattered the numbers. The 22.18% ROCE is respectable, and the Piotroski F-Score of 7/9 suggests the balance sheet is not deteriorating. But I cannot ignore the lack of book value, ROE, and promoter holding data. As Graham said, 'In the short run the market is a voting machine, but in the long run it is a weighing machine.' Right now the market is voting with a price that has run from ₹67 to ₹335 in 52 weeks. I am being paid a 0.57% dividend while taking all that risk. The PEG ratio of 0.14 assumes the 569% profit growth continues. That seems too optimistic when sales growth is only 4%. I would need to see many more quarters of profitable growth, higher revenue, and better disclosure before I treat this as a compounding machine. At 41 times earnings with a tiny base, the margin of safety is thin. This may become a fine business, but as an investor I want to be paid for uncertainty, not to pay a premium for it.

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