Purple Wave Info (544627)

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

Key Financials

Strengths

• ROCE of 53.70% reflects exceptional capital efficiency.
• P/E of 9.78 with profit growth of 51.22% gives a very low PEG of 0.23.
• Sales growth of 32.99% shows rapid business expansion.
• Piotroski F-Score of 7/9 suggests decent financial health.
• Latest quarter is profitable with ₹7 Cr net profit on ₹78 Cr sales.

Concerns

• Dividend yield is 0%, so returns depend entirely on reinvestment and growth.
• Promoter holding is not disclosed, creating governance uncertainty.
• Book value, ROE, and Debt/Equity are unavailable, so leverage and true returns cannot be verified.
• Small market cap of ₹112 Cr could mean higher volatility and limited liquidity.

AI Analysis

Looking at Purple Wave Info, the first thing that catches my eye is the combination of value and growth. At ₹120.90, the market is asking only 9.78 times earnings, while profits have grown 51.22% and sales 32.99%. That gives a PEG ratio of 0.23, which is remarkably cheap if those numbers can be sustained. I like businesses that earn high returns on capital; a ROCE of 53.70% suggests this company is using its capital very efficiently, though I wish ROE and book value were disclosed so I could check the leverage behind that return. The Piotroski F-score of 7 out of 9 also gives me some comfort about the underlying financial health. The latest quarter shows sales of ₹78 Cr and net profit of ₹7 Cr, so the profit margin is around 9%. That is not a high-margin franchise, but the high capital efficiency and growth are encouraging. No dividend tells me this is a reinvestment story; as an investor, I am relying on management to deploy earnings wisely. I cannot fully assess the moat from these numbers alone. Industrial Products is a broad category, and I don't know the competitive position, customer concentration, or pricing power. The absence of promoter holding data is a warning. I never buy a small company like this, market cap ₹112 Cr, without understanding who controls it and whether their interests align with mine. The valuation is tempting, but value investing requires a margin of safety in both price and knowledge. If the growth continues and the balance sheet is as clean as the high ROCE implies, this could be a superb small-cap compounder. But given missing information, I would demand a wide discount and a thorough check before committing capital.

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