E2E Networks (E2E)
TurnaroundFairStock Score: 28/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹666.75 |
| Market Cap | ₹13,698.9 Cr |
| P/E Ratio | 244.23 |
| ROCE | 8.08% |
| ROE | -0.95% |
| Dividend Yield | 0% |
| Profit Growth | -149.18% |
| Debt/Equity | 0.09 |
| Sales Growth | 334.1% |
| Free Cash Flow | ₹-16,01,99,700.48 Cr |
| Promoter Holding | 39.45% |
| 52-Week Range | ₹361.7 — ₹4,538 |
| Sector | IT - Services |
| Book Value | ₹840.48 |
Strengths
- Low debt-to-equity of 0.09 provides a solid balance sheet cushion.
- Revenue growth of 68.32% indicates strong demand for the business.
- Positive ROCE of 8.08% shows underlying operations generate some return on capital.
- Latest quarter sales of ₹70 crore reflect meaningful scale building.
Concerns
- Net profit is negative at ₹-6 crore in the latest quarter, with profit growth at -149.18%.
- Negative free cash flow and zero dividend yield mean no cash returns to shareholders.
- Piotroski F-Score of 4/9 and negative ROE of -0.95% signal weak financial health.
- Expensive valuation with P/B of 3.46 and no meaningful P/E due to losses.
AI Analysis
Let me look at E2E Networks through Graham’s lens. At ₹2,906.50, the market wants ₹5,176 crore for this business. I ask: what am I buying? Sales grew 68.32%, which is impressive. But the latest quarter shows ₹70 crore sales and a net loss of ₹6 crore. Profit growth is -149.18%, meaning the company has swung sharply into the red. Growth without profit is a hungry child in a sweetshop—it burns money. Free cash flow is negative, no dividends are paid, and the Piotroski F-Score is just 4 out of 9, a weak report card. The balance sheet has low debt (Debt/Equity 0.09), and that is the one clear positive here. ROCE of 8.08% shows the underlying operations earn something, but after finance costs and taxes, the return on equity is -0.95%. That is not a machine I can value. With no P/E because earnings are absent, I look at book value: P/B is 3.46—so I pay more than three-and-a-half times book for a loss-making business. The 52-week range from ₹361.70 to ₹4,538.00 is violent, and the stock sits far above the low but well below the high. Promoters hold only 39.45%. I want the people running the company to have a bigger stake in my boat. Is this a good business? The growth says maybe; the financials say not yet. As Buffett says, 'You never know who's swimming naked until the tide goes out.' Here the tide has gone out on profits, and the valuation is still pricing perfection. I need a margin of safety; I don’t find it. I’ll watch, not buy.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer