Chatterbox Tech (544546)

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

Key Financials

Strengths

• ROCE of 56.72% indicates exceptional capital efficiency.
• P/E of 8.94 with 25.33% profit growth gives a PEG ratio of 0.30, suggesting undervaluation.
• Piotroski F-Score of 7/9 reflects generally healthy fundamentals.
• Latest quarter delivered ₹36 Cr sales and ₹5 Cr net profit, showing momentum.
• Sales growth of 33.41% demonstrates strong demand for its services.

Concerns

• Advertising and media agencies are fragmented with low switching costs, raising doubt about moat durability.
• Profit growth of 25.33% trails sales growth of 33.41%, indicating possible margin pressure.
• No dividend paid, so investor returns depend entirely on future growth and capital gains.
• Critical data missing: book value, ROE, promoter holding, and debt/equity limit proper Graham-style analysis.

AI Analysis

At ₹61.98, Chatterbox Tech has a market cap of only ₹88 Cr. That makes it a small business in a notoriously competitive industry. But the numbers catch my eye. A P/E of 8.94, with sales growth of 33.41% and profit growth of 25.33%, translates into a PEG ratio of roughly 0.30. Benjamin Graham taught me to demand a margin of safety; on an earnings yield and growth basis, the market is offering one here. ROCE of 56.72% is striking. It suggests this agency uses capital exceptionally well, likely relying on intangible strengths like client relationships, brand, and creative talent that do not show up on a balance sheet. The latest quarter, with sales of ₹36 Cr and net profit of ₹5 Cr, shows real momentum. A Piotroski F-score of 7/9 also gives me some confidence in the company's fundamental health. However, I cannot fully embrace what I cannot see. There is no book value, no ROE, no promoter holding figure, and no debt-to-equity ratio. That lack of transparency bothers me. Advertising and media agencies face low barriers to entry; clients can leave, margins can compress, and growth often requires expensive talent. There is no dividend, so shareholders depend entirely on capital appreciation. Profit growth is also lagging sales growth, which hints at some margin pressure. So, is this a franchise or just a project-based vendor? I need more evidence. At a single-digit P/E with 25% profit growth, the market is not asking much. The high ROCE, solid F-score, and low PEG make it a fast grower worth watching, but size and missing governance data keep me from calling it a true compounder yet.

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