Exato Technologies (544626)

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

Key Financials

Strengths

• ROCE of 25.14% indicates strong capital efficiency.
• Profit growth of 77.24% is impressive, far ahead of sales growth of 18.53%.
• Piotroski F-Score of 7/9 suggests solid underlying financial health.
• Latest quarter shows ₹35 Cr sales generating ₹4 Cr net profit, implying an 11.4% net margin.
• PEG of 0.59 suggests recent growth is not fully reflected in the price.

Concerns

• P/E of 28.12 is not cheap, and zero dividend yield offers no downside cushion.
• Critical data is missing: promoter holding, book value, debt/equity, and 52-week range are unavailable.
• Sales growth of 18.53% is respectable but not exceptional; the profit leap may be non-recurring.
• IT-enabled services is a competitive sector with limited durable moats.

AI Analysis

At first glance, Exato Technologies is an interesting small-cap IT services player. A ROCE of 25.14% tells me the business puts capital to good use — the kind of efficiency I like. Sales grew 18.53% and profits jumped 77.24%; the latest quarter's ₹35 Cr sales generated ₹4 Cr profit, an 11.4% net margin. A Piotroski score of 7/9 adds a bit of reassurance on financial health. Yet I must resist enthusiasm. A P/E of 28.12 is not bargain territory, and zero dividend means I rely entirely on growth for returns. The PEG of 0.59 suggests Mr. Market hasn't fully priced in recent growth, but a PEG ratio is only as good as the durability of that growth. In IT-enabled services, moats are often weak; clients can shift vendors. More importantly, the data is incomplete: no promoter holding, no book value, no debt/equity, and no 52-week range. I cannot assess managerial stewardship or balance-sheet risk properly. In Benjamin Graham's words, facts are needed before conclusions. Profit growth far outpacing sales growth could reflect operating leverage, but it could also be a one-off gain. I would want to see several quarters of expanding margins and steady cash conversion before calling this a durable compounding machine. For now, it is a fast grower on my watchlist, not a position. If growth continues and the missing transparency appears, valuation could become sensible; until then, I will keep my powder dry.

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