Capillary Tech. (CAPILLARY)

FairStock Score: 15/100 — RISKY

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

Key Financials

Strengths

• Low debt/equity ratio of 0.17 provides financial stability
• Promoter holding at 52.28% aligns interests with minority shareholders
• Top-line sales growth of 15.75% shows demand for products
• Latest quarter still net positive at ₹8 crore profit

Concerns

• Extremely high P/E of 380.32 with profit growth declining 30.04%
• ROCE of only 2.88% indicates poor capital efficiency
• Piotroski F-Score of 4/9 signals weak fundamentals
• No dividend yield and PEG ratio of 24.15 make valuation unjustifiable

AI Analysis

Let's look at Capillary Tech as I would any business. The price of ₹551.70 gives a market cap of ₹4,077 crore – that's a heavy price for a company earning just ₹8 crore in its latest quarter and showing a 30% decline in profit growth. A P/E of 380 and a PEG of 24.15 tell me the market is discounting perfection, but the numbers say otherwise. Return on capital employed is only 2.88%, far below what I'd expect from a quality software products business. Book value is ₹81.30, so paying 6.79 times book means I'm paying for future miracles, not present value. Sales growth of 15.75% is respectable, but it's not translating to shareholder earnings. The Piotroski F-Score of 4 out of 9 confirms weak financial health. No dividend means I'm relying entirely on price appreciation from an already stretched valuation. Promoter holding of 52.28% is reassuring, and debt/equity of 0.17 shows a conservative balance sheet. But as Graham said, price is what you pay, value is what you get. At these levels, I'm getting very little value. This is not a business I would buy with my hard-earned money until profitability improves dramatically and the price falls to a margin of safety.

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