Cambridge Tech. (CTE)

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

Key Financials

AI Analysis

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

In investing, I prefer certainty to excitement, and Cambridge Tech offers more uncertainty than clarity. The first red flag is the P/E printed at 0.00—this tells me the trailing earnings stream is not reliable enough to value. The latest quarter shows sales of ₹47 Cr and net profit of only ₹1 Cr; that is a razor-thin 2% margin, hardly the hallmark of a software consulting franchise with pricing power. Sales have declined 9.33%, and ROCE is deeply negative at -18.79%. In other words, the business is destroying capital on its existing operations. The 128.22% profit growth looks impressive at first glance, but a percentage from a negligible base means little; one crore rupees is not a moat. Book value stands at ₹25.91, and with a price of ₹30.87, I am paying a 19% premium over book. That could look like an asset cushion, but with debt/equity at 1.18 and negative returns on capital, book value can be eroded. ROE of 4.79% is no better than a fixed deposit, and there is no dividend to compensate. Promoter holding of 50.91% is a positive sign, but good intentions don't substitute for a durable competitive advantage. Software consulting has low barriers to entry, and I see no proprietary edge here. The Piotroski score of 5/9 is mediocre, and the FairStock Score of INSUFFICIENT_DATA reinforces that this is not a well-understood business. Graham taught me to buy with a margin of safety; at this price, with shrinking sales and negative ROCE, the margin is thin. If the company can stabilize revenues, reduce debt, and earn better returns on capital, I could look again. Today, I will pass.

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