Innovana Think. (INNOVANA)
TurnaroundFairStock Score: 23/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹319.4 |
| Market Cap | ₹659.88 Cr |
| P/E Ratio | 17.95 |
| ROCE | 25.6% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | -33.59% |
| Debt/Equity | 0.21 |
| Sales Growth | -16.81% |
| Promoter Holding | 72.65% |
| 52-Week Range | ₹296 — ₹564.8 |
| Sector | IT - Software |
| Book Value | ₹81.45 |
Strengths
- Strong ROCE of 25.60% with modest debt/equity of 0.19
- Sales growth of 20.64% shows demand traction
- High promoter holding of 72.65% aligns interests with minority shareholders
- Reasonable headline valuation: P/E 17.87, PEG 0.87, and price about 31% below the 52-week high
Concerns
- Profit growth declined 18.22% despite sales growth, indicating margin pressure
- Piotroski F-Score of 4/9 suggests weak fundamental health
- No dividend yield, so investor relies solely on capital gains
- P/B of 3.07 and unavailable ROE make it difficult to assess shareholder value creation
AI Analysis
At ₹389.20, Innovana Think presents a mixed picture. I like a low-debt business: debt-to-equity of 0.19 and ROCE of 25.60% suggest management can deploy capital profitably. Promoter holding of 72.65% is also comforting; owners have skin in the game. Sales grew 20.64%, and with a P/E of 17.87 and a PEG of 0.87, the headline valuation appears reasonable. But Graham taught me to focus on earnings power and consistency. Profit growth is -18.22%, and the latest quarter's ₹9 Cr net profit on ₹35 Cr sales, while solid, has not reversed the downtrend. A Piotroski F-Score of 4/9 warns of weakening fundamentals. There is no dividend, so I cannot wait for income while holding. Book value is ₹126.87; at P/B of 3.07, I am paying more than three times book for a company whose ROE is not even available. That bothers me. The stock is 31% off its 52-week high of ₹564.80, but a falling price is not automatically a margin of safety. The top line is growing, yet profits are shrinking - a sign of possible margin compression or rising costs. This looks to me like a turnaround situation rather than a fast grower. I would want evidence of stable margins, positive profit growth, and an improving F-score before committing capital. Until then, I watch and wait.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer