Infonative Solu. (544393)

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

Key Financials

Strengths

• Low P/E of 8.65 provides a cheap apparent entry on trailing earnings.
• ROCE of 51.41% suggests strong capital efficiency if sustained.
• Latest quarter net profit of ₹2 Cr on sales of ₹12 Cr shows a healthy margin of around 16.7%.
• Sales growth of 7.48% is positive, even if modest.
• Small market cap of ₹33 Cr leaves room for niche growth if execution improves.

Concerns

• Profit growth of -58.24% is a severe deterioration in earnings power.
• Piotroski F-Score of 4/9 signals weak financial fundamentals.
• No dividend paid, so shareholders rely entirely on price appreciation.
• Critical data missing — book value, ROE, debt/equity, and promoter holding — making balance-sheet quality difficult to assess.

AI Analysis

At first glance, Infonative Solu looks like a classic value stock: a market cap of just ₹33 Cr, a P/E of 8.65, and a ROCE of 51.41%. But as Graham taught, a low price is not the same as value. The profit picture is troubling — profit growth has fallen 58.24%, while sales growth is only 7.48%. That is not a healthy compounding machine. The latest quarter shows sales of ₹12 Cr and net profit of ₹2 Cr, which is encouraging on the surface, but one quarter does not undo a year of declining earnings. The trailing earnings implied by the P/E work out to around ₹3.8 Cr, so the latest quarter alone is more than half of that; I would want to know why the rest of the trailing period was so weak before calling this a turnaround. The Piotroski F-Score of 4/9 further warns me that the financial fundamentals are not strong. No dividend means the investor receives nothing while waiting. I am also uncomfortable with missing data — no book value, no ROE, no debt-to-equity, and no promoter holding. If I cannot see the balance sheet and ownership structure, I cannot judge the moat or the integrity of those returns. ROCE above 50% is impressive, but without capital and debt details, it may simply reflect a very small capital base rather than a powerful business. PEG of 1.16 is meaningless when profit growth is strongly negative. In IT-enabled services, a durable moat is rare, and with modest sales growth, pricing power looks limited. This may eventually be a turnaround, but for now the margin of safety is not visible. I will wait for more transparency and evidence of sustained earnings recovery.

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