Compuage Info. (COMPINFO)

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

Key Financials

Strengths

• Price-to-book of 0.04: at ₹1.35 against book value ₹33.25, the market is assigning almost no value to stated net assets.
• Promoter holding of 42.65% keeps owners and minority shareholders reasonably aligned.
• Latest quarter still generated ₹389 Cr of sales, indicating the company has not completely lost its franchise.
• Trading near the low end of its ₹0.91–₹2.52 52-week range, much of the bad news appears priced in.

Concerns

• Quarterly net loss of ₹137 Cr is more than ten times the entire market cap of ₹12 Cr—an existential bleed.
• Debt/Equity of 2.93 plus negative ROCE of -11.29% means leverage is working against shareholders.
• Sales declined 69.83% and profit growth was -1417.55%; the business is shrinking, not stabilizing.
• Piotroski F-score of 2/9 and zero dividend offer no support; reported free cash flow appears internally inconsistent.

AI Analysis

Compuage looks like a classic Graham asset play at first glance: ₹1.35 against ₹33.25 book value, a P/B of just 0.04. But the business itself is deteriorating. Sales growth is -69.83%, profit growth is -1417.55%, and the latest quarter shows ₹389 Cr of sales but a ₹137 Cr net loss. Against a ₹12 Cr market cap, that single quarterly loss is catastrophic. My Graham checklist starts with financial health, and here it fails: debt/equity is 2.93, ROCE is -11.29%, and the Piotroski F-score is 2/9. The stated ROE of 12.86% contradicts the latest loss, so I won't rely on it. The reported free cash flow figure, ₹33.65 lakh Cr, is impossible to reconcile with a ₹12 Cr market cap—I treat it as a data error. A hardware distribution business with collapsing revenue and negative returns has no obvious moat. What could make this interesting? If the book value is real and audited, the stock is trading at a 96% discount to net assets. But a loss of ₹137 Cr can chew through that book value quickly, and creditors with 2.93 times debt stand ahead of equity holders. Promoter holding of 42.65% is decent, but good alignment cannot offset negative operating economics. This is not a fast grower or a stalwart; it is a distressed asset play. The bottom of the 52-week range is ₹0.91, so the stock is already beaten down. Graham would demand evidence that the ₹137 Cr loss is non-recurring, that assets are not overstated, and that liquidity can survive further deterioration. Without that, cheap is just cheap.

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