Infollion Resea. (INFOLLION)

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

Key Financials

Strengths

• Sales growth of 45.18% indicates strong demand momentum.
• ROCE of 31.18% shows efficient use of capital.
• Piotroski F-Score of 7/9 suggests sound financial health.
• P/E of 22.87 with PEG of 0.69 implies reasonable valuation relative to growth.
• Promoter holding of 51.65% aligns owner interests.

Concerns

• Profit growth of 20.88% lags sales growth of 45.18%, suggesting margin pressure or reinvestment costs.
• Insufficient data on book value, ROE, and debt/equity limits balance sheet assessment.
• No dividend means returns depend entirely on future earnings appreciation.
• Stock at ₹244.55 is far below the 52-week high of ₹551, signaling market skepticism.

AI Analysis

At ₹244.55, Infollion trades at 22.87 times earnings. For a business growing sales at 45.18%, that is not expensive, and with a PEG of 0.69, the market is paying less than the growth rate. My mentor taught me to pay a fair price for a wonderful business, not a wonderful price for a fair business. The high ROCE of 31.18% hints at capital efficiency. The Piotroski score of 7 out of 9 also gives me some confidence that the financial condition is sound, though I cannot see debt-equity or book value from the information given. What bothers me is the divergence: sales grew 45.18% but profit grew only 20.88%. In the latest quarter, sales were ₹51 Cr and net profit ₹7 Cr, an approximate margin of 14%. That is respectable, but the profit growth lagging sales suggests competitive pressure, rising costs, or reinvestment. A truly wonderful business should convert top-line momentum into bottom-line gains. The stock is about ₹244.55, well below the 52-week high of ₹551, so Mr. Market has already repriced expectations. Promoter holding at 51.65% is acceptable but not exceptional. No dividend means my return depends entirely on future earnings growth. I would classify this as a fast grower, not a stalwart. The moat is unclear in a diversified commercial services business. I need to see margins stabilise, cash conversion, and evidence that growth is durable. I would wait for a margin of safety, because with limited data and a price already down heavily, patience is prudent.

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