CapitalNumbers (544343)

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

Key Financials

Strengths

• P/E of 7.69 with profit growth of 8.11% gives a reasonable PEG of 1.18 and margin of safety.
• ROCE of 26.47% indicates strong capital efficiency.
• Latest quarter net profit of ₹15 Cr on sales of ₹53 Cr implies a healthy profit margin.
• Piotroski F-Score of 7/9 suggests solid operational and financial health.
• Dividend yield of 1.18% offers a modest but tangible shareholder return.

Concerns

• Sales growth is only 4.94%, signaling a slow-growing top line.
• Critical data missing: promoter holding, book value, debt/equity, and 52-week range, limiting full quality assessment.
• Small-cap status with ₹207 Cr market cap may make the stock volatile and susceptible to low liquidity.
• Software consulting is a competitive industry; no durable moat is evident from the provided figures.

AI Analysis

At current price ₹84.73, market cap ₹207 crore, the market is pricing this small software exporter at a P/E of only 7.69. That kind of multiple implies modest expectations, yet the company earns a ROCE of 26.47% and converted a latest quarter's ₹53 crore revenue into ₹15 crore net profit. That is a decidedly high-quality margin profile, whatever the annual smoothing. Profit growth 8.11% is outpacing sales growth 4.94%, so operating leverage is visible, though revenue growth is hardly exciting. The Piotroski F-Score of 7 out of 9 tells me the balance sheet and operating efficiency are not deteriorating, and a dividend yield of 1.18% shows some shareholder return. As Graham would say, buy with a margin of safety. A P/E below eight with a PEG of 1.18 and positive profit growth offers some protection, but I cannot call this a wonderful business yet. Software consulting is a competitive, relationship-driven field; without promoter holding, book value, debt details, and a 52-week range, I have to rely on what is shown. The top line is growing at under 5%, which is not enough for me to label it a growth machine. This is a slow grower with decent capital efficiency and a cheap multiple. I would want to see sales growth accelerate, or at least maintain profitability, before treating it as a core holding. If it can keep earning 26%-plus on capital and compound profits at high single digits, the low valuation may eventually correct itself. But in a small-cap, with limited data, patience and monitoring are essential.

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