Unified Data (544406)

FairStock Score: 53/100 — MIXED

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

Key Financials

Strengths

• Strong revenue momentum: 40.79% sales growth with latest quarter sales of ₹149 Cr.
• High ROCE of 47.86% signals efficient use of capital and potential competitive edge.
• Latest quarter net profit of ₹17 Cr confirms the business is currently profitable.
• PEG of 0.58 suggests the market is not demanding a premium for near-term growth, if growth is sustainable.

Concerns

• Profit growth fell 21.39% despite 40.79% sales growth, indicating margin compression.
• Piotroski F-Score of 4/9 points to weak financial health and earnings quality.
• Zero dividend yield means shareholders rely solely on uncertain capital gains.
• Lack of data on book value, ROE, debt/equity, and promoter holding limits transparency and margin-of-safety assessment.

AI Analysis

Unified Data draws my attention the way any 40% grower would, but Graham would remind me to look past the top line. Sales grew 40.79%, and the latest quarter brought ₹149 Cr in revenue with ₹17 Cr in net profit. The ROCE of 47.86% is genuinely impressive — it suggests the capital employed is earning a high return, a possible sign of a competitive advantage. However, profit growth is down 21.39% while sales are up 40.79%. That is a red flag: the business is selling more but earning less per rupee, and margins are under pressure. At ₹348.10 with a market cap of ₹699 Cr, the P/E is 23.81. That is not an expensive multiple for a fast grower, and the PEG of 0.58 looks attractive on the surface. But a PEG calculated on revenue growth while profits are falling is a deceptive shortcut. The Piotroski F-score of 4/9 reinforces my caution — this is not a financially robust profile. Also troubling is what the sheet does not tell me: no book value, no ROE, no debt ratio, no promoter holding. In Graham's philosophy, lack of information is as important as information itself. Dividend yield is zero, so the return must come entirely from growth. I cannot derive a reliable intrinsic value without seeing cash flow and balance sheet quality. This is a fast-growing IT-enabled company, but it is not yet a proven compounding machine. I would watch for margin recovery and evidence of earnings conversion. Until profits start matching the sales story, the prudent investor should keep Unified Data on the watchlist rather than treat today's price as a margin of safety.

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