Euphoria Infotec (544094)

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

Key Financials

Strengths

• Low trailing P/E of 6.86, suggesting the market is pricing in limited earnings power
• ROCE of 16.20% indicates reasonably efficient use of capital
• Latest quarter shows profitability: ₹1 Cr net profit on ₹6 Cr sales
• Small market cap of ₹20 Cr leaves room for meaningful growth if operations stabilize

Concerns

• Sales growth is negative at -9.34%, and profit growth is sharply down at -31.25%
• Piotroski F-Score of 3/9 points to weak financial health and possible distress signals
• No dividend yield, so shareholders receive no income while waiting for a recovery
• Critical data missing: book value, debt/equity, and promoter holding are unavailable; stock is near 52-week high despite falling earnings

AI Analysis

At ₹69.20, Euphoria Infotec carries a market cap of only ₹20 Cr and a trailing P/E of 6.86. That looks cheap, but cheapness must be measured against earning power, not last year's profits. Sales fell 9.34% and profit fell 31.25%; those are backward-looking facts, and they point in the wrong direction. Quarterly sales of ₹6 Cr with net profit of ₹1 Cr offer a small positive, but one quarter does not make a trend. The Piotroski F-Score of 3/9 is a loud warning. It tells me the operating and financial quality are weak, or at least deteriorating. ROCE is 16.20%, which is decent, but I don't know the debt level, book value, or promoter holding. In Graham's language, inadequate information means inadequate analysis. I would not call this a moat. An IT-enabled services firm with declining revenue and tiny absolute size has limited pricing power and likely faces intense competition. Dividend yield is nil, so I receive no income while I wait. The stock sits near its 52-week high of ₹69.20 after trading as low as ₹22.53; the market has re-rated it, but earnings have gone the other way. I need to see sales stabilize, profit margin stop compressing, and a Piotroski score above, say, 6, before I could call it a turnaround. The low P/E may be a value trap. If the business truly stabilizes, the upside could be large; if not, ₹20 Cr can become much smaller. I would wait on the sidelines until the figures catch up with the enthusiasm.

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