Compucom Soft. (COMPUSOFT)

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

Key Financials

Strengths

• Price-to-book of 0.80, trading below book value of ₹17.55
• Low debt-to-equity of 0.33, balance sheet is not stretched
• Sales growth of 10.48%, showing some top-line traction
• Dividend yield of 1.41%, pays a small income while waiting
• High promoter holding of 71.06%, aligned with minority shareholders

Concerns

• ROE of just 1.84% and ROCE of 3.53%, reflecting weak capital efficiency
• Profit growth down 54.55% and latest quarter net profit near zero
• P/E of 37.16 and PEG of 3.55, expensive relative to current earnings power
• Piotroski F-score of 4/9, indicating poor operational and financial health

AI Analysis

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.

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