Genesys Intl. (GENESYS)
TurnaroundFairStock Score: 22/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹181.15 |
| Market Cap | ₹1,109.51 Cr |
| P/E Ratio | 33.55 |
| ROCE | 15.03% |
| ROE | 5.2% |
| Dividend Yield | 0% |
| Profit Growth | -35.9% |
| Debt/Equity | 0.25 |
| Sales Growth | 10.7% |
| Promoter Holding | 31.52% |
| 52-Week Range | ₹168.5 — ₹612 |
| Sector | IT - Services |
| Book Value | ₹173 |
Strengths
- ROCE at 15.03% shows decent capital efficiency
- Low debt/equity of 0.21 keeps the balance sheet conservative
- Book value of ₹133.84 provides some downside support
- Promoter holding of 31.52% aligns some skin in the game
Concerns
- Sales growth of -14.94% and profit growth of -75.27% show deteriorating fundamentals
- Latest quarter net profit of only ₹1 Cr on sales of ₹76 Cr means razor-thin margins
- P/E of 29.10 on collapsing earnings is expensive, not cheap
- Piotroski F-score of 3/9 indicates weak financial health, and dividend yield is zero
AI Analysis
Genesys Intl. currently sells at ₹280.60, a market cap of ₹1,256 Cr. In the Graham-Buffett discipline, the first question is whether the business earns good returns on capital. ROCE is 15.03%, which is respectable, but ROE is only 6.69%, meaning equity holders are not getting much for their risk. The latest quarter tells the story: ₹76 Cr revenue produced just ₹1 Cr net profit. That is not a franchise with pricing power; it is a business struggling to keep its head above water. Sales are down 14.94% and profits down 75.27%. A 29.10 P/E on this shrinking earning power is not cheap—it is a hope premium. The Piotroski F-score of 3/9 reinforces the weak financial health. There is no dividend to compensate while waiting. Book value of ₹133.84 gives some cushion, but at P/B of 2.10 the market is paying double for a 6.69% ROE. That fails my margin-of-safety test. The only comfort is the low debt/equity of 0.21 and a 31.52% promoter holding. The company is not drowning in debt, but it is also not generating meaningful profits. From ₹647.90 down to ₹280.60, the stock has fallen hard. That alone does not make it cheap. Without evidence of stabilizing sales and recovering margins, this looks like a value trap, not a bargain. I need proof of a turnaround: a few quarters of rising revenue, higher net profit, and better cash generation. Until then, I pass. In Graham's words, 'The investor's chief problem—and even his worst enemy—is likely to be himself.' The market is offering a risky ticker, not a clear value. So I keep my wallet closed.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer