Compucom Soft. (COMPUSOFT)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹14.11, Compucom Soft caught my eye for one simple reason: it trades at 0.80 times book value while book value stands at ₹17.55. That is a margin of safety on the balance sheet. But as Graham taught, a cheap price is never enough. The business itself must earn a decent return. Here, ROE is just 1.84% and ROCE is 3.53%. The latest quarter showed sales of ₹9 Cr and net profit of roughly ₹0 Cr; annual profit growth collapsed by 54.55%. With P/E at 37.16 on a falling earnings base, the market is still pricing in a recovery. I would not call this a wonderful business at a fair price; it is a mediocre business at a discount to book value. The balance sheet is not reckless: debt-to-equity is 0.33, and a 1.41% dividend offers some compensation for waiting. Sales growth of 10.48% shows some life, but it has not translated into profitability or acceptable returns. Promoter holding at 71.06% is a positive; their interests are aligned with minority holders. Still, the Piotroski F-score of 4/9 and PEG of 3.55 reinforce my caution. Profitability quality is poor. If I buy, I am buying asset value and optionality on a turnaround, not earnings power. I want to see this education business generate consistent operating profits, not just revenue growth. Until margins and ROE recover meaningfully, I will treat this as a small asset play with a long patience horizon—and only with the understanding that book value can shrink if losses persist.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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