Fonebox Retail (FONEBOX)

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

Key Financials

Strengths

• Sales growth of 35.88% and profit growth of 32.56% with a P/E of 15.26 gives a PEG of just 0.45.
• ROCE of 33.64% suggests efficient use of capital.
• Promoter holding of 72.53% aligns owner interests with minority shareholders.
• Piotroski F-Score of 7/9 indicates reasonably sound financial position.
• Trading near 52-week low offers a margin of safety after falling from ₹124.40 to ₹64.00.

Concerns

• Extremely thin net margin: ₹2 Cr net profit on ₹224 Cr quarterly sales is under 1%.
• No dividend means total return depends entirely on price appreciation.
• No book value, ROE, or debt/equity data makes balance sheet risk impossible to assess.
• Speciality retail is highly competitive with limited durable moat.

AI Analysis

Fonebox Retail catches my attention because it combines rapid growth with a reasonable price. Sales grew 35.88% and profits 32.56%, yet the stock trades at a P/E of 15.26. With a PEG of 0.45, the market is paying less than half a rupee for every rupee of growth if the present pace continues. The company earns a ROCE of 33.64%, which suggests management is employing capital efficiently. Promoter holding of 72.53% is another positive; owners' interests are closely tied to minority shareholders. The Piotroski F-score of 7 out of 9 also indicates decent financial health. But I must temper enthusiasm. This is speciality retail, a business with few durable moats. Consumers can shift preference quickly, and competition is fierce. The latest quarter shows ₹224 Cr in sales but only ₹2 Cr net profit – that's a wafer-thin margin, under 1%. Such a business is vulnerable to rising costs or pricing pressure. The absence of book value and debt/equity data is troubling; I cannot judge the balance sheet adequately. Also, no dividend means my only return is appreciation. The share is near its 52-week low of ₹57, down from ₹124.40, so the market is sceptical. A cheap price can become cheaper. Still, 35.88% sales growth with 32.56% profit growth, a PEG of 0.45, and high ROCE make Fonebox an interesting fast grower. I would insist on monitoring quarterly margins and debt before committing real money.

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