Adroit Info. (ADROITINFO)

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

Key Financials

Strengths

• Revenue momentum: sales growth of 86.59% and latest quarter net profit of ₹2 crore show a recent operational pickup.
• Low leverage: debt/equity of 0.29 keeps balance-sheet risk manageable.
• Price near book value: P/B of 1.14 and book value of ₹8.78 offer some asset downside support.
• Piotroski F-score of 6/9 suggests improving fundamentals relative to a weak base.
• Small scale allows for sharp turnaround swings; profit growth of 181.48% signals a possible inflection.

Concerns

• Core profitability is weak: ROE of -0.88% and ROCE of -1.79% mean the business is not yet earning acceptable returns on capital.
• P/E of 0.00 is meaningless as a valuation tool; there are no reliable trailing earnings to justify the price.
• Zero dividend means all expected returns rely on capital appreciation, adding risk.
• Promoter holding of 37.47% is modest for a micro-cap; governance and alignment need scrutiny.

AI Analysis

At ₹10.01, Adroit Info is a ₹55 crore micro-cap in IT-enabled services. Buffett would say: start with the business. Sales grew 86.59% and reported profit grew 181.48%, and the latest quarter shows ₹14 crore sales and ₹2 crore net profit. That sounds exciting, but I am not a story investor; I am a returns investor. The ROE is -0.88% and ROCE -1.79%. This company, on an annual basis, is still destroying value on the capital it employs. The P/E of 0.00 is a red flag, not a cheap rating: it tells me trailing earnings are absent or meaningless, so I cannot anchor valuation to earnings. Graham would look at book value: ₹8.78 per share against a price of ₹10.01, so the stock trades at only 1.14 times book. That offers some asset support, but book value is only useful if the business earns a decent return on those assets. Debt/equity is 0.29, so leverage is not frightening. Piotroski F-score of 6/9 suggests some fundamental improvements, and the recent profitable quarter is encouraging. Still, zero dividend means I'm completely dependent on capital appreciation. Promoter holding of 37.47% is modest for micro-cap India; I want owner-operators with more skin in the game. This is not a moat business: IT-enabled services is competitive, low-barrier, and prone to revenue lumpiness. The 86% sales growth from a small base can mislead; the base was tiny. For me, the test is whether management can turn this recent momentum into consistent returns above cost of capital. Until ROE and ROCE turn convincingly positive, I'd classify this as a possible turnaround, not a great business. I'd keep it on the watchlist and demand evidence before putting money to work.

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