Mangal Compuso. (544287)

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

Key Financials

Strengths

• Strong revenue momentum: sales growth of 55.57% and latest quarter sales of ₹15 crore.
• Healthy recent profitability: latest quarter net profit of ₹3 crore on ₹15 crore sales implies a 20% net margin.
• Reasonable valuation for a growth company: P/E of 14.68 and PEG of 0.41.
• Piotroski F-Score of 7/9 and ROCE of 17.24% suggest decent fundamentals.
• Small dividend yield of 1.04% provides a modest positive signal.

Concerns

• Profit growth of 16.14% trails sales growth of 55.57%, indicating margin pressure or rising costs.
• Insufficient data: no book value, ROE, debt-equity ratio, or promoter holding details are available.
• Microcap size with a ₹65 crore market cap makes the stock vulnerable to volatility and liquidity issues.
• No clear economic moat is visible in a diversified commercial services business.

AI Analysis

Let me look at Mangal Compuso as a business first. A ₹65 crore market cap, selling at ₹48, with a P/E of 14.68 — that is not an expensive ticket. But cheapness is only interesting if the business can grow and survive. The numbers show a company with momentum: sales up 55.57%, and the latest quarter shows ₹15 crore in revenue and ₹3 crore in net profit, implying a strong 20% net margin. That tells me the business model can convert revenue into earnings. Yet profit growth stands at only 16.14%, far behind sales growth. In my experience, when revenue runs ahead of profits, costs or margins are being squeezed. I need to know why. The balance sheet is a bit of a blank canvas — no book value, ROE, or debt-equity ratio is available. That bothers me. Graham taught that you never invest based on hope; you invest based on facts. The Piotroski score of 7/9 and ROCE of 17.24% are encouraging, but they are only partial clues. A return on capital employed above 15% suggests a decent business, but it tells me nothing about leverage or promoter commitment. At 14.68 times earnings, with a PEG of 0.41, the market is paying a reasonable price for strong growth — if it is durable. I would not call this a deep-value Graham stock; it is a small growth company. Moat? I don't see clear evidence of one from these figures. Diversified commercial services can be a fragmented field. So my approach: watch the next few quarters, monitor whether profit growth catches up with sales, and demand better disclosure. The market cap is tiny, so any setback will be painful. There is promise, but discipline comes before enthusiasm.

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