Delphi World (DELPHIFX)

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

Key Financials

Strengths

• Promoter holding of 61.32% keeps management aligned with minority shareholders.
• Book value of ₹9.24 gives some tangible asset backing relative to ₹13.25 price.
• Latest quarter sales of ₹64 Cr and 408% sales growth show significant business activity and top-line momentum.
• ROE is positive at 4.56%, so book value is not being destroyed in the latest full-year picture.

Concerns

• Net profit is effectively zero in the latest quarter, with profit growth down 93.18% and ROCE at 0%.
• Debt-to-equity of 25.47 is extreme for a business with such weak returns; balance-sheet risk is high.
• Piotroski F-Score of 3/9 points to poor fundamental health in profitability, leverage, and efficiency.
• No dividend and an absurd/contradictory reported free cash flow figure reduce confidence in the numbers.

AI Analysis

Let me start with what I understand: a business must earn money. At ₹13.25, Delphi World carries a market cap of ₹326 Cr, but the latest quarter produced ₹64 Cr of sales and ₹0 Cr of net profit. Profit growth is down 93.18%, and ROCE is 0%, so the top line is not reaching the bottom line. That alone fails my test. The 408% sales growth looks exciting, but a company selling more without earning more is not a good business; it is just volume. Book value is ₹9.24, so I am paying 1.43 times book — not cheap enough for a business earning only 4.56% on equity. The debt-to-equity ratio of 25.47 is terrifying. High leverage is how financial companies get ruined; no amount of promoter holding at 61.32% can substitute for a sound balance sheet. The Piotroski F-Score of 3/9 reinforces the picture of a company under stress. The reported free cash flow of ₹206.99 lakh Cr is nonsensical for a ₹326 Cr company; when the data does not make sense, I dig deeper or walk away. And with zero dividend yield, I am not being paid to wait. I am not saying this cannot turn around — 408% growth suggests activity — but I need to see genuine profits, far lower leverage, and believable cash flow before risking my capital. Graham said price is what you pay, value is what you get. At ₹13.25, I get no earnings, no margin of safety, and enormous balance-sheet risk. This is a pass for now.

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