Digitide Solutio (DIGITIDE)
TurnaroundFairStock Score: 7/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹100.09 |
| Market Cap | ₹1,492.45 Cr |
| P/E Ratio | 20.12 |
| ROCE | 0% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | -394.49% |
| Debt/Equity | 0.58 |
| Sales Growth | 2.69% |
| Promoter Holding | 56.98% |
| 52-Week Range | ₹69.9 — ₹201.25 |
| Sector | IT - Services |
| Book Value | ₹56.11 |
Strengths
- Promoter holding at 56.98% keeps management aligned with minority shareholders.
- Sales growth of 6.55% shows the business is not shrinking at the top line.
- Debt/equity of 0.46 is moderate, not over-levered.
- Book value of ₹56.83 provides some asset backing; P/B of 1.61 is not extreme.
Concerns
- Latest quarter net loss of ₹8 Cr and profit growth of -81.35% indicate serious earnings deterioration.
- ROCE is 0.00% and ROE is N/A, meaning capital is not producing shareholder returns.
- Piotroski F-Score of 3/9 signals weak operating and financial health.
- PEG of 3.07 and P/E of 20.12 are not justified by 6.55% sales growth, with zero dividend yield.
AI Analysis
Digitide Solutio fails my first test: a business must earn a superior return on capital. ROCE is 0.00%, ROE is unavailable, and the latest quarter shows a ₹8 Cr loss on ₹496 Cr of sales. This is not earning power; it is consumption of capital. Reported P/E of 20.12 looks meaningless when profit growth is -81.35% and the Piotroski F-Score is a weak 3/9. Graham would ask for a margin of safety, but at ₹91.71 I am paying 1.61 times book value of ₹56.83 for a business that earns no return on that book. Debt/equity at 0.46 is not alarming, but with zero return on capital, even moderate debt becomes a risk. Sales growth of 6.55% is positive but unexciting; with a PEG of 3.07, the market is not offering a cheap entry. Promoter holding at 56.98% is good alignment, but ownership cannot replace profitability. The stock has fallen from ₹219 to ₹91.71, and the FairStock Score of 7/100 labels it risky. This looks like a potential value trap: cheap on price-to-book relative to its past, but not cheap relative to its deteriorating earnings. I need evidence of stabilization before even putting this on a watchlist. No dividend, no return on equity, no confidence. In Buffett's words, 'turnarounds seldom turn.' I'll pass unless operations show a sustained return to positive profit and improving returns on capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer