Sodhani Academy (544257)

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

Key Financials

Strengths

• Sales growth of 213.64% indicates strong demand for the e-learning offering.
• ROCE of 18.54% suggests decent capital efficiency for a small company.
• Piotroski F-Score of 7/9 points to reasonable fundamental health, not a distressed balance sheet.
• The company is profitable in the latest quarter with net profit of ₹2 Cr.
• PEG of 0.26 appears attractive if the high growth rate can be sustained.

Concerns

• Profit growth of just 3.55% against 213.64% sales growth shows revenue is not flowing through to the bottom line.
• Latest quarter net profit of ₹2 Cr equals sales of ₹2 Cr, implying a 100% margin that raises earnings-quality red flags.
• P/E of 28.33 for a ₹111 Cr micro-cap leaves very little room for error.
• Critical data—book value, promoter holding, debt/equity, 52-week range—is missing, making a thorough Buffett-style assessment impossible.

AI Analysis

At first glance, Sodhani Academy looks like the classic high-growth story that Buffett would approach with caution. Sales up 213.64% is eye-opening. But I cannot ignore that profit growth is only 3.55%. In my experience, when revenue grows at triple digits but profits lag, it usually means the business is buying growth, facing pricing pressure, or using aggressive accounting. The latest quarter shows sales of ₹2 Cr and net profit of ₹2 Cr — a 100% margin. That is too neat to be believable; it makes me question whether this is operational earnings or one-off income. With a P/E of 28.33 and market cap of ₹111 Cr, the market is already paying up for this small e-learning player. And where is the moat in a crowded e-learning space? A PEG of 0.26 looks helpful, but it only matters if the growth is durable; given the profit mismatch, I would not lean on it. On the positive side, ROCE of 18.54% is respectable and Piotroski F-score 7/9 suggests the fundamentals are not broken. But I have no book value, no promoter holding, no debt-equity, and no 52-week range. Benjamin Graham taught me that in a micro-cap with this little disclosure, you are not buying a business; you are buying a lottery ticket at a premium price. The dividend yield of 0.26% offers no margin of safety. I would want to understand the profit geometry and see cash flow before investing. A 213% growth rate from a ₹2 Cr base is not rare; it can disappear as quickly as it appears. Odds favour the house, not the buyer.

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