Aditya Infotech (CPPLUS)

FairStock Score: 51/100 — MIXED

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

Key Financials

Strengths

• Strong growth: 5-year revenue CAGR of 22.05%, latest sales up 37.32% and profit up 138.82%.
• Very low leverage with debt/equity of 0.08, providing financial flexibility.
• Positive free cash flow of ₹115 Cr and Piotroski F-Score of 7/9 indicate decent earnings quality.
• High promoter holding of 76.91% aligns management interests with minority shareholders.
• ROCE of 19.49% shows efficient operating capital deployment.

Concerns

• Valuation is stretched: P/E of 78.39 and P/B of 12.62 leave little margin of safety.
• Zero dividend yield means investors depend entirely on capital gains.
• Profit growth of 138.82% is likely to decelerate from an unsustainable base.
• ROE is shown as N/A, so the durability of shareholder-level returns is unproven; the stock is also 44% below its 52-week high.

AI Analysis

At first glance, Aditya Infotech has the energy of a compounder. Five-year revenue CAGR of 22.05%, latest quarter sales of ₹1,139 Cr, profit of ₹96 Cr, and profit growth of 138.82% are eye-catching. The balance sheet is conservative: debt/equity 0.08, free cash flow of ₹115 Cr, and a Piotroski F-score of 7/9. Promoter holding of 76.91% tells me owners have skin in the game. ROCE of 19.49% is respectable, though ROE is shown as N/A — I need to see a clear, high ROE before calling this a great business. But the price is not my friend. At ₹2,273.10, the P/E is 78.39 and P/B is 12.62. Graham would say the protection I get from tangible assets is thin. A zero dividend yield means every rupee of return must come from future growth. Growth of 37.32% in sales and 138.82% in profits is strong, yet buying at 78 times earnings leaves no room for disappointment. The stock is 44% off its 52-week high; Mr. Market can turn against this name violently. FairStock at 51/100 says the fundamental score is mixed. PEG of 0.89 suggests the valuation is not absurd if growth continues. But profit growth at 138% is not sustainable — I must ask what normalized earnings look like. I admire the low debt, the cash flow, and the growth. As Buffett, I'd put this on my watchlist, not in my wallet at this price. I want a margin of safety. Wait for a better price or for proof that growth and returns on capital are durable.

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