Dev Information (DEVIT)

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

Key Financials

Strengths

• Low leverage: Debt/Equity of only 0.18 provides balance sheet stability during losses.
• High promoter holding of 66.63% aligns management with minority shareholders.
• ROCE of 11.20% remains positive despite the current earnings downturn.
• Book value per share of ₹12.06 offers some asset backing below the market price.

Concerns

• Latest quarter net loss of ₹7 Cr on sales of ₹44 Cr; P/E is meaningless with negative earnings.
• Profit growth declined by 520.23% and sales growth is negative at -7.48%.
• Piotroski F-score of 3/9 indicates weak overall financial health.
• P/B of 2.84 is not cheap for a shrinking, loss-making IT services company.

AI Analysis

Dev Information reminds me of a business I'd approach with caution. The headline ROE of 98.40% looks spectacular, but Graham taught me to treat a single ratio with suspicion. A company with a latest-quarter net loss of ₹7 Cr on sales of ₹44 Cr cannot be earning a 98% ROE in any sustainable sense. Profit growth has collapsed by 520.23%, sales have shrunk 7.48%, and the P/E is effectively meaningless at zero because earnings are negative. The Piotroski F-score of 3/9 reinforces that this business is not in good financial health. The balance sheet is the one bright spot: debt-to-equity is only 0.18, and promoters hold 66.63%, so interests are aligned and there is no dangerous leverage. At ₹34.28, the market cap is ₹131 Cr, while book value per share is ₹12.06. That gives a P/B of 2.84 — not cheap for an IT services firm with shrinking revenue and losses. The dividend yield of 0.86% offers modest protection, but Graham would demand a margin of safety. I see no durable competitive moat, no pricing power, and no evidence that the company can consistently earn more than its cost of capital. ROCE of 11.20% is thin. I would not call this a stalwart or a grower; it is a turnaround situation. The stock has fallen from ₹50.89 to ₹34.28, and the low debt gives management some room, but I need proof of stabilization before risking capital. I'd want to see quarterly sales stop shrinking, positive net profit, and an improving F-score. Until then, this is a pass for the disciplined investor.

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