Excelsoft Tech. (EXCELSOFT)
Fast GrowerFairStock Score: 46/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹73.96 |
| Market Cap | ₹851.16 Cr |
| P/E Ratio | 18.22 |
| ROCE | 16.42% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 33.3% |
| Debt/Equity | 0.01 |
| Sales Growth | 44.1% |
| Promoter Holding | 59.09% |
| 52-Week Range | ₹66.4 — ₹142.59 |
| Sector | IT - Services |
| Book Value | ₹50.25 |
Strengths
- Strong growth: sales up 29.93% and profit up 42.24%
- PEG ratio of 0.71 suggests valuation is supported if growth persists
- Low debt-to-equity of 0.12 provides balance sheet stability
- Promoter holding of 59.09% aligns management with minority shareholders
- Piotroski F-Score of 7/9 indicates solid recent fundamentals
Concerns
- P/E of 25.71 and P/B of 2.45 leave little margin of safety
- No dividend means returns depend entirely on future capital appreciation
- FairStock Score of 44/100 is mixed, and ROE is not reported/available
- No clear competitive moat is evident from the figures in a competitive IT services space
AI Analysis
Let me begin with what I know: Excelsoft Tech earns ₹11 crore in its latest quarter on ₹71 crore sales, which annualizes to roughly ₹44 crore on a ₹981 crore market cap. That is near the stated P/E of 25.71, so I am not buying cheaply. Book value is ₹38.36 while the price is ₹93.95, meaning I pay 2.45 times book—not a Graham net-net or asset play. Growth is the story: sales are up 29.93% and profit up 42.24%. A PEG of 0.71 suggests the price is reasonable if that growth continues. But I have learned to be suspicious of growth without a moat. The data do not tell me why customers choose Excelsoft, how sticky revenue is, or whether this IT-enabled services business has pricing power. Promoter holding at 59.09% is healthy and aligns owners with minority shareholders. Debt is low at 0.12 debt-to-equity, and ROCE of 16.42% is respectable but not spectacular. No dividend means I must rely entirely on capital gains and management's capital allocation. The Piotroski F-score of 7 out of 9 shows decent recent financial health, yet the FairStock Score of 44/100 is mixed. The 52-week range of ₹66.40 to ₹142.59 tells me Mr. Market has swung wildly. As Graham said, price is what you pay, value is what you get. At ₹93.95, I am paying a fair, not cheap, price for a fast-growing small company without clear durable advantage. I need a larger margin of safety before committing meaningful capital. I will keep it on the watchlist.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer