Telge Projects (544544)

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

Key Financials

Strengths

• ROCE of 55.40% indicates strong capital efficiency
• Sales growth of 71.32% shows rapid business expansion
• Profit growth of 277.27% with a PEG of 0.09 suggests low valuation relative to growth
• Piotroski F-Score of 7/9 points to healthy fundamentals
• Latest quarter is profitable with ₹1 Cr net profit on ₹9 Cr sales

Concerns

• Critical balance sheet data missing: no book value, ROE, or debt/equity ratio
• Tiny market cap of ₹91 Cr makes it a high-risk microcap
• Zero dividend yield offers no income support for investors
• 277% profit growth likely off a small base and may not be sustainable in a cyclical construction business

AI Analysis

Looking at Telge Projects, I am reminded that small construction companies can be wonderful growers but dangerous investments. At ₹93, the market capitalises Telge at just ₹91 crore. That is a microcap by any standard. The trailing P/E of 16.52 is not demanding if the growth is real: sales grew 71.32% and profits jumped 277.27%. A PEG of 0.09 suggests the market is paying very little for that momentum. ROCE of 55.40% is exceptional, and the Piotroski score of 7/9 points to decent financial health. Yet I must pause. Graham taught me to demand a margin of safety. Here book value, ROE, and debt/equity are simply not available. I cannot tell how much equity backs my rupee or how leveraged the balance sheet is. The latest quarter shows sales of ₹9 crore and net profit of ₹1 crore; annualised, that is only ₹4 crore against a ₹91 crore market cap. That is not cheap unless growth continues for several years. Construction is cyclical, competitive, and working-capital heavy. A 277% profit jump often comes off a tiny base and is rarely repeatable. There is no dividend to cushion a patient investor. I would not rule out owning it, but I would demand more data: audited balance sheet, cash flow, debt position, promoter holding, and order book visibility. In a small cap, the promoter's skin in the game and the company's ability to collect cash matter as much as the income statement. Telge has the numbers of a fast grower, but the missing information prevents a Graham-style conclusion. I would wait on the sidelines until the picture is complete.

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