InfoBeans Tech. (INFOBEAN)
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 | ₹162.4 |
| Market Cap | ₹1,999.79 Cr |
| P/E Ratio | 18.56 |
| ROCE | 16.81% |
| ROE | 20.68% |
| Dividend Yield | 0.31% |
| Profit Growth | -6.7% |
| Debt/Equity | 0.04 |
| Sales Growth | 36.6% |
| Promoter Holding | 74.4% |
| 52-Week Range | ₹116.5 — ₹257.5 |
| Sector | IT - Software |
| Book Value | ₹42.65 |
Strengths
- ROE of 20.68% and ROCE of 16.81% show efficient capital deployment.
- Very low debt-to-equity of 0.04 gives financial strength and flexibility.
- Sales growth of 39.58% and profit growth of 173.23% show strong momentum.
- Promoter holding of 74.40% aligns management interests with minority shareholders.
- Piotroski F-Score of 7/9 indicates solid financial health.
Concerns
- P/E of 26.11 leaves little room for error if growth decelerates.
- Profit growth of 173.23% may be unsustainable or from a low base.
- Dividend yield of only 0.12% offers negligible income support.
- FairStock Score of 46/100 is mixed, and the price is well below the 52-week high of ₹257.50.
AI Analysis
At heart, I am not buying a stock, I am buying a business. InfoBeans has some traits I admire: a return on equity of 20.68%, almost no leverage at 0.04 debt-to-equity, and promoters holding 74.40%, which aligns their interests with mine. A Piotroski score of 7 out of 9 also suggests a healthy financial position. But I need a margin of safety. At ₹173.85, the market price is 1.40 times book value of ₹124.46, and the P/E of 26.11 is not low. The 52-week range of ₹116.50 to ₹257.50 reminds me that this has been a volatile ride. The latest quarter shows sales of ₹134 Cr and net profit of ₹19 Cr, and reported profit growth of 173.23% looks spectacular. Yet whenever profit growth is that high, I ask: is this a durable economics of a good business, or a one-time bounce? A PEG of 0.25 seems too good to be true; Mr. Market is rarely that generous with truly durable businesses. Sales growth of 39.58% is encouraging, but in software consulting, competitive position and client relationships matter more than headline numbers. There is no obvious enduring moat visible from these figures. The dividend yield is barely 0.12%, so my return must come from value appreciation, not income. Overall, this is a fast-growing, financially sound enterprise, but the price leaves limited margin of safety. If growth continues and profitability holds, it may be worth more; if growth slows, a 26 P/E could compress quickly. I would keep it on my watchlist, not build a large position today.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer