Techknowgreen (543991)

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

Key Financials

Strengths

• Sales growth of 23.89% with latest quarterly sales of ₹17 Cr shows business expansion.
• ROCE of 29.50% indicates strong return on capital and an asset-light consulting model.
• P/E of 13.51 and PEG of 0.57 appear reasonable if earnings growth resumes.
• Latest quarter net profit of ₹3 Cr on ₹17 Cr sales suggests a healthy margin.

Concerns

• Profit growth of -21.84% despite 23.89% sales growth points to margin compression or rising costs.
• Piotroski F-Score of 4/9 is weak and raises doubts about financial health.
• Zero dividend and missing data on promoter holding, debt/equity, ROE, and book value limit transparency.
• Consulting businesses tend to have low moats and face pricing pressure from competition.
• Stock has tripled from ₹95.50 to ₹287, so much optimism may already be priced in.

AI Analysis

Buffett's first rule is never lose money. At face value, Techknowgreen looks affordable: ₹287 price, ₹212 Cr market cap, and a P/E of 13.51. But I need earnings, not promises. Sales have grown 23.89%, yet profits have fallen 21.84%. That divergence bothers me. The latest quarter shows ₹17 Cr sales and ₹3 Cr profit, roughly an 18% margin, but one good quarter does not make an investment. A Piotroski score of 4 out of 9 is a warning: the financial health is average at best. ROCE of 29.50% is impressive and suggests an asset-light consulting model that generates strong returns on capital. If that is durable, it is valuable. But consulting is a low-moat business; clients can switch, and competition can compress margins quickly. I have no promoter holding, no book value, no debt-to-equity ratio, and no ROE available. I cannot assess agency risk or balance-sheet risk. The dividend yield is zero, so shareholders rely entirely on growth and capital gains. The PEG of 0.57 looks tempting, but it is built on sales growth, not profit growth. When earnings are declining, a cheap PEG can be a value trap. The stock has also risen from ₹95.50 to ₹287, near its 52-week high, and that threefold move already discounts a lot of good news. I would need proof that margins are stabilising, profit growth turns positive, management is shareholder-friendly, and the order pipeline is visible. Until then, this is a possible turnaround candidate, not a compounder. I keep it on the watchlist, but I will not put capital at risk just because the price looks low.

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