CMS Info Systems (CMSINFO)

FairStock Score: 32/100 — RISKY

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

Key Financials

Strengths

• ROCE of 23.67% indicates efficient capital deployment and some business quality.
• Very low debt/equity of 0.10 provides financial stability and downside protection.
• Dividend yield of 2.14% gives modest income while waiting for recovery.
• Positive sales growth of 6.32% shows the business is still expanding its top line.
• Reasonable trailing P/E of 15.14, if earnings stabilize.

Concerns

• Profit growth of -29.91% and thin latest-quarter margin (~9.2%) signal earnings pressure.
• Zero promoter holding means no insider skin in the game, raising governance and agency risks.
• Piotroski F-Score of 4/9 and FairStock Score of 32/100 reflect weak financial health.
• PEG of 2.40 suggests valuation already factors in limited growth, leaving little margin of safety.

AI Analysis

At ₹312.90, CMS Info Systems offers a 15.14 trailing price-to-earnings ratio and a 2.56 price-to-book. The firm is no compounder: sales grew only 6.32%, and profits shrank by 29.91%—a red flag. Piotroski F-Score of 4/9 reinforces that financial health has deteriorated. Yet the underlying business is not a house of cards: ROCE at 23.67% is respectable, debt/equity is just 0.10, and the dividend yield of 2.14% offers some downside support. Book value stands at ₹122.34, so we are paying a premium for a business that earned 14.71% on equity last year. That return, while not exceptional, is decent. However, the greatest red flag is zero promoter holding. An ownerless ship is difficult to trust; it suffers from agency risk and no insider conviction. The stock trades near the bottom of its 52-week range (₹254.60-₹452.30), suggesting the market has already marked down expectations. The latest quarter netted ₹57 Cr on ₹618 Cr sales, a margin of roughly 9.2%, which is thin. With a PEG of 2.40, growth is already priced. I would not mistake low P/E for bargain; Benjamin Graham taught us to demand a margin of safety. Here, profitability is declining, F-Score is poor, and governance is lacking. The only comfort: a strong ROCE, low leverage, and a moderate dividend. This is a possible turnaround, not a stalwart. I would wait for evidence that profit margins stabilize and that some insider or institutional promoter emerges. Until then, the risk/reward is not compelling.

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