Delaplex (DELAPLEX)

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

Key Financials

Strengths

• P/E of 7.22 implies a high earnings yield of roughly 13.8%, so the valuation appears modest.
• Profit growth of 15.34% despite sales growth of only 3.45% suggests improving margins or operating leverage.
• Latest quarter net margin is about 19% (₹7 Cr profit on ₹37 Cr sales), respectable for software services.
• Promoter holding of 74.25% aligns promoter interests with minority shareholders.
• Piotroski F-Score of 6/9 indicates reasonable financial health based on available metrics.

Concerns

• Sales growth of only 3.45% is weak; profit growth may not be sustainable without revenue momentum.
• Book value, ROE, and debt/equity are undisclosed, making it hard to assess balance-sheet quality and leverage.
• Zero dividend yield means minority shareholders receive no cash return.
• The 52-week range of ₹81.15–₹194.85 shows volatility and the stock is about 44% below its high, reflecting market uncertainty.

AI Analysis

At ₹110, this is a tiny software consulting company with a market cap of just ₹94 crore and a P/E of 7.22. That means the market is pricing in an earnings yield near 14%, a handsome figure if the business is durable. But Graham taught me to never buy on cheapness alone; I need evidence of a moat and financial strength. Here, the top line grew only 3.45%, while profit grew 15.34% – that tells me margins are doing the heavy lifting. The latest quarter shows ₹37 crore sales and ₹7 crore net profit, roughly a 19% margin, which is respectable for software services. Yet I cannot see book value, ROE, or debt from these numbers. That is uncomfortable. Inadequate disclosure prevents me from judging whether this franchise is truly financially healthy. The Piotroski score of 6 out of 9 is acceptable but not outstanding. Promoter holding at 74.25% can be a double-edged sword: it aligns owners with minority shareholders, but it also reduces free float and can keep governance questions hidden. The stock has traded between ₹81.15 and ₹194.85 in 52 weeks; at ₹110 it is well below the high, so the market has already soured on it. Dividend yield is zero, so the shareholder must rely entirely on price appreciation or future capital allocation. With a PEG of 0.77, the valuation seems reasonable if profit growth continues, but top-line growth of 3.45% makes this a slow grower, not a compounding machine. I would want three things before investing: better sales growth, more transparency on capital employed, and proof that margins can hold. Otherwise a cheap price can become cheaper.

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