Black Box (BBOX)
Slow GrowerFairStock Score: 27/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹795.85 |
| Market Cap | ₹14,134.23 Cr |
| P/E Ratio | 60.98 |
| ROCE | 29.75% |
| ROE | 21.27% |
| Dividend Yield | 0.13% |
| Profit Growth | 6% |
| Debt/Equity | 0.9 |
| Sales Growth | 9.5% |
| Promoter Holding | 70.11% |
| 52-Week Range | ₹443.05 — ₹1,103 |
| Sector | IT - Services |
| Book Value | ₹72.5 |
Strengths
- Promoter holding of 70.11% aligns management interest with minority shareholders.
- Revenue growth of 10.51% and latest quarterly sales of ₹1,660 Cr show scale and top-line momentum.
- Reported ROCE of 29.75% suggests efficient operating-capital usage.
- Piotroski F-Score of 7/9 indicates recent financial health is reasonably stable.
Concerns
- Valuation is rich: P/E of 33.46 and P/B of 22.12 with profit growth of only 0.13% give a PEG of 4.23.
- Return on equity is just 4.36%, so shareholders' equity is not generating an adequate return.
- Debt/equity of 1.15 adds balance-sheet risk, and the dividend yield of 0.19% offers negligible downside support.
- FairStock Score of 24/100 labels the stock risky, and it has fallen sharply from the 52-week high of ₹1,103.
AI Analysis
Let me take the Graham and Buffett lens. The first thing I notice is price: ₹549.10, with a market cap of ₹9,095 Cr. Am I getting a wonderful business? Maybe. But a wonderful business at a foolish price is not wonderful for my portfolio. The book value is only ₹24.82, so I am paying 22.12 times net worth. The P/E is 33.46, and profit growth is just 0.13%. That gives a PEG of 4.23. In other words, the market is paying a very rich multiple for almost no earnings growth. Revenue has grown 10.51%, and the latest quarter reported ₹1,660 Cr of sales and ₹50 Cr of net profit. Still, sales growth without profit growth is just effort, not compounding. Return on equity is 4.36%, while reported ROCE is 29.75% and debt/equity is 1.15. That combination tells me to be careful about debt and the quality of the equity base; high operating returns are not reaching the shareholder. The dividend yield of 0.19% gives me nothing while I wait. Promoter holding of 70.11% is a genuine positive, and the Piotroski score of 7/9 shows the balance sheet is not deteriorating. But FairStock rates this 24/100, risky. The stock has fallen from ₹1,103 to ₹549.10, yet even after the fall it is not cheap. I need a margin of safety — a business worth more than I pay. Here, I struggle to find it. If profits do not accelerate, 33.46 times earnings will leave little upside. I will keep it on my watchlist, not buy it today.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer