Identixweb (544388)

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

Key Financials

Strengths

• ROCE of 34.33% indicates efficient use of capital
• Profit growth of 31.98% and sales growth of 22.72% show strong momentum
• P/E of 16.68 with PEG of 0.61 suggests reasonable valuation relative to growth
• Piotroski F-Score of 7/9 signals broadly sound financial health
• Latest quarter profitable with ₹2 Cr net profit on ₹6 Cr sales, implying strong margins

Concerns

• Tiny market cap of ₹72 Cr makes the business vulnerable to volatility and client concentration
• No dividend yield, so total return depends entirely on growth execution
• Missing data on book value, ROE, debt/equity, and promoter holding limits confidence
• Software consulting is competitive, and no clear durable moat is evident from the figures provided

AI Analysis

Looking at Identixweb, I see a small software firm trading at ₹69 with a market cap of just ₹72 crore. At 16.68 times earnings, it is not expensive, and with profit growth near 32% and sales growth near 23%, the PEG ratio of 0.61 suggests the market is paying less than the growth rate. That is interesting, but I must be careful: small numbers can be misleading. The latest quarter shows sales of ₹6 crore and net profit of ₹2 crore—meaningful margins, but a tiny base. A 34.33% ROCE is excellent; it tells me capital is being deployed efficiently. The Piotroski score of 7 out of 9 also points to a healthy financial position, though I don't have debt or book value figures to confirm. As Graham would say, the lack of data on promoter holding and book value prevents me from sleeping easy. I also note there is no dividend, so the return must come entirely from business growth and eventual earnings power. This is a fast grower in a competitive software services space, where moats can be shallow. I would want to know whether the growth is coming from repeat clients, IP, or one large project. For a ₹72 crore company, even one client loss can hurt. Still, at this price, the odds appear reasonable: strong ROCE, rising profits, and a P/E below the growth rate. But I would not build a large position without more transparency; I would keep this on my watchlist and track quarterly order flow, client concentration, and cash conversion.

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