Infinity Infoway (544567)

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

Key Financials

Strengths

• ROCE of 61.71% indicates exceptional capital efficiency.
• Explosive growth: sales up 201% and profits up 685%, with latest quarter net profit of ₹2 Cr on ₹6 Cr sales.
• Piotroski F-Score of 7/9 suggests sound financial health.
• Low PEG of 0.07 implies growth may justify the earnings multiple.
• Latest quarter net margin of roughly 33% shows strong profitability.

Concerns

• P/E of 32.56 is expensive, leaving little room for disappointment.
• Zero dividend yield means minority shareholders rely entirely on capital appreciation.
• Critical data missing: book value, ROE, debt/equity, promoter holding, and 52-week range.
• Quarterly revenue of only ₹6 Cr is a tiny base; such high growth may not be durable.

AI Analysis

As a value investor, I look for a bargain between price and intrinsic value. At ₹381.50, Infinity Infoway is not priced like a Graham special; the P/E is 32.56 and market cap is ₹208 Cr. Yet the underlying business shows flashes of remarkable economics. ROCE stands at 61.71%, and the latest quarter produced ₹6 Cr of sales and ₹2 Cr of net profit, a 33% margin. Sales growth of 201% and profit growth of 685% are explosive, and the PEG ratio of 0.07 suggests that paying up may be justified if growth can persist. The Piotroski F-Score of 7 out of 9 also points to a financially healthy firm. But I must discipline myself with the words 'I don't know.' Book value, return on equity, debt-to-equity, promoter holding, and even the 52-week range are all missing. That is not enough information for a confident margin of safety. This is an IT-enabled service company with a minuscule quarterly revenue base of ₹6 Cr; at that size, one client win or loss can swing the numbers wildly. No dividend is paid, so the minority shareholder is entirely dependent on future earnings growth and capital allocation. The figures are encouraging, but they describe a fast grower, not yet a durable enterprise. I would wait for audited annual accounts, cash-flow evidence, and several more quarters of execution before committing capital. In Buffett's language, you can smell the growth, but you cannot yet measure the moat.

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