Workmates Core2 (544610)

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

Key Financials

Strengths

• Sales growth of 55.99% and latest quarter sales of ₹75 Cr show strong revenue momentum.
• ROCE of 92.32% indicates a highly capital-light business and efficient use of capital.
• Piotroski F-Score of 7/9 suggests decent financial health across profitability, leverage, and efficiency.
• PEG ratio of 0.64 makes the valuation appear more reasonable relative to the profit growth of 30.23%.
• Latest quarter net profit of ₹9 Cr on ₹75 Cr sales demonstrates near-term earning power.

Concerns

• P/E of 27.56 is rich; if growth slows, the margin of safety is thin.
• Profit growth of 30.23% lags sales growth of 55.99%, indicating margin pressure.
• Critical data—book value, ROE, debt/equity, promoter holding, and 52-week range—are missing, so financial risk and ownership alignment cannot be fully assessed.
• Zero dividend yield means all returns must come from reinvestment and eventual market re-rating.

AI Analysis

At ₹343, Workmates Core2 capitalizes at only ₹443 Cr. The P/E of 27.56 is not the bargain price Graham might wait for, but the growth math deserves attention. Sales are expanding at 55.99% and profits at 30.23%, giving a PEG of 0.64 if that growth is sustainable. A ROCE of 92.32% is striking—this looks like a capital-light software business that can compound without heavy borrowing. Piotroski F-Score of 7/9 suggests healthy fundamentals, though I note the missing book value, ROE, debt/equity and promoter holding figures. A value investor cannot fully sign off on a bank without seeing the balance sheet. The latest quarter shows sales of ₹75 Cr and net profit of ₹9 Cr. That suggests the business may be gaining momentum, but the trailing P/E implies roughly ₹16 Cr of annual profit, so quarterly profits are volatile or seasonally lumpy. If this quarter becomes the new normal, the stock would look less expensive; if not, the current multiple is demanding. Profit growth lagging sales growth by about 25 points tells me margins are under pressure—common in software services when hiring or delivery costs rise. There is no dividend; I am being asked to trust management to reinvest all capital. In a small-cap, high-growth Indian software company, moats are narrow; client concentration and attrition can hurt quickly. I would not build a core position without more data. But with F-score 7, high ROCE, low PEG, and expanding sales, this is a fast grower worth putting on the watchlist. I need clearer evidence of margin stability, sustainability of growth, and a healthier balance sheet before paying 27 times earnings.

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