Qualitek Labs (544091)

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

Key Financials

Strengths

• Latest quarter is profitable: ₹54 Cr sales and ₹5 Cr net profit, a ~9% net margin.
• At current market cap of ₹218 Cr, annualised latest-quarter sales of ~₹216 Cr imply a modest price-to-sales if earnings stabilise.
• The stock has fallen sharply from its 52-week high of ₹458.95 to ₹215.60, so market expectations may already be low.

Concerns

• Piotroski F-Score of 2/9 signals very weak financial health.
• P/E of 58.90 is demanding for a business with zero sales and profit growth.
• ROCE is 0.00%, dividend yield is 0.00%, and current price is below the stated 52-week low of ₹258.55.
• Critical data like book value, debt/equity, and promoter holding are missing, leaving no margin of safety to assess.

AI Analysis

I approach Qualitek Labs with Graham's first rule: facts over hope. The facts are unflattering. The Piotroski F-Score is 2 out of 9, a score that usually belongs to a business under financial stress, not a compounding machine. The stated P/E of 58.9 tells me Mr. Market is still asking a rich price for each rupee of current earnings, despite zero sales growth and zero profit growth. The latest quarter shows ₹54 Cr sales and ₹5 Cr net profit, a roughly 9% net margin, but I cannot extrapolate one quarter into a moat. With ROCE at 0.00% and no dividend, shareholders are getting no return on capital or cash in hand. Perhaps the most disturbing detail is the price: at ₹215.60, it is below the stated 52-week range low of ₹258.55. That means sellers have overwhelmed buyers, and value investors must be cautious about catching a falling knife. I also lack basic information: book value, P/B ratio, ROE, debt-to-equity, and promoter holding are all missing. Graham taught me to invest behind a margin of safety, and this stock offers only opacity. A consulting business can be attractive if it has pricing power and repeat clients, but the numbers here do not prove that. In fact, F-Score 2/9 and zero growth suggest the opposite. I would put this in the too-hard pile. Before I look again, I need evidence of a genuine turnaround: improving F-Score, stable or rising revenue and profit, and a balance sheet I can actually assess. Until then, this remains a speculation, not an investment.

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