Digikore Studios (DIGIKORE)

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

Key Financials

Strengths

• Sales growth of 52.72% and profit growth of 116.67% indicate strong recent demand and operating leverage.
• Latest quarter net margin is approximately 17.6% (₹6 Cr profit on ₹34 Cr sales), showing profitability at current scale.
• Promoter holding at 66.76% aligns management interests with minority shareholders.
• Piotroski F-Score of 6/9 suggests reasonably healthy financials despite limited disclosures.

Concerns

• Reported ROCE is -11.06%, raising questions about whether growth is generating real returns on capital.
• P/E, book value, ROE and debt/equity are N/A — insufficient data for a Buffett-style margin of safety.
• No dividend; total reliance on future capital gains.
• Stock is sharply below its 52-week high of ₹190.60 despite strong growth, indicating speculative volatility.

AI Analysis

At ₹71.85, Digikore Studios carries a market cap of only ₹108 crore. A tiny business in an industry I normally approach with caution: media and entertainment is fickle, and competitive moats are hard to find. The growth numbers catch the eye — sales up 52.72% and profit up 116.67% — and the latest quarter shows ₹34 crore sales and ₹6 crore net profit, a healthy 17.6% margin. But I must be honest: the reported P/E is 0.00, book value is N/A, and ROE is N/A. I cannot value what I cannot see. Graham would say that a missing figure is not an invitation to guess. The negative ROCE of -11.06% is a red flag. Even a fast-growing business must eventually earn a good return on capital; otherwise it consumes cash while reporting profits. The 52-week range of ₹32.40 to ₹190.60 tells me this stock has been speculative — down sharply from its high despite strong sales growth. That kind of volatility is dangerous. On the positive side, promoter holding of 66.76% aligns owners with minority shareholders, and a Piotroski score of 6/9 suggests the financials are not deteriorating. But a high score on a small company with insufficient data gives me limited confidence. The absence of dividend means I am relying entirely on future earnings growth. I would not buy at this price. I will watch from the sidelines until book value, debt, and return on equity are reported consistently, and until I can see whether this growth is durable and profitable on capital.

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