InfoBeans Tech. (INFOBEAN)

Fast Grower

FairStock 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 Ratio18.56
ROCE16.81%
ROE20.68%
Dividend Yield0.31%
Profit Growth-6.7%
Debt/Equity0.04
Sales Growth36.6%
Promoter Holding74.4%
52-Week Range₹116.5 — ₹257.5
SectorIT - Software
Book Value₹42.65

Strengths

Concerns

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