ACE Alpha Tech (544431)

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

Key Financials

Strengths

• High ROCE of 54.34% indicates very efficient use of capital
• Profit growth of 23.68% with a PEG of 0.82 suggests reasonable valuation relative to growth
• Piotroski F-Score of 7/9 points to solid financial health across operations, leverage, and efficiency
• Attractive absolute P/E of 14.74 for a growing software business

Concerns

• Latest quarter shows ₹9 Cr sales but ₹8 Cr net profit, implying an unsustainable 90% margin or possible one-off income
• No data on book value, promoter holding, debt/equity, or 52-week range limits fundamental verification
• Zero dividend yield means no income cushion; returns rely entirely on share price appreciation
• Sales growth of 12.25% is far below profit growth of 23.68%, raising questions about earnings durability

AI Analysis

Looking at ACE Alpha Tech, I see a small-cap software firm trading at ₹106 with a market cap of ₹186 crore. At a P/E of 14.74 and a PEG of 0.82, the market is giving me modest growth at a reasonable price. Profit growth of 23.68% is nearly double sales growth of 12.25%, which tells me margins are expanding, but it also makes me want to dig deeper into the quality of those earnings. The ROCE of 54.34% is exceptional—this is a business generating strong returns on capital employed, a hallmark of a franchise with pricing power or efficient operations. The Piotroski F-Score of 7/9 gives me some comfort that the financials are not deteriorating on a broad set of operating and liquidity measures. In true Graham style, I must not pay up for hope. The latest quarter shows sales of ₹9 crore and net profit of ₹8 crore—an implied margin near 90%, which is simply not sustainable for a software consulting business unless there is a one-off gain. That is a red flag I cannot ignore. I also lack critical data: book value, promoter holding, and debt levels are not available, so I cannot complete my usual margin-of-safety checklist. The zero dividend yield means I am entirely dependent on capital appreciation. Still, at 14.7 times earnings with a high return on capital and a reasonable growth rate, this could be an interesting fast grower. But I would need to understand the earnings quality, the sustainability of that quarterly profit, and the integrity of management before committing capital. In the end, price is what you pay, value is what you get—and here I need more value evidence.

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