Kellton Tech (KELLTONTEC)

FairStock Score: 46/100 — MIXED

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

Key Financials

Strengths

• Low P/E of 11.08 with 21.46% profit growth yields PEG 0.70, offering a margin of safety.
• Piotroski F-score 7/9 suggests solid financial health and earnings quality.
• Low debt/equity of 0.22 and ROCE 17.11% indicate prudent capital management.
• Latest quarter sales ₹308 Cr and net profit ₹25 Cr show continued operating activity.
• Sales growth 10.41% provides some top-line momentum.

Concerns

• ROE at 8% is unimpressive, and P/B 4.99 is expensive relative to book value.
• Zero dividend yield means returns solely depend on price appreciation.
• Sales growth (10.41%) lags profit growth (21.46%), raising sustainability question.
• Promoter holding 37.67% is moderate, not strong enough for a small-cap.

AI Analysis

At ₹16.03, Kellton Tech trades at a P/E of 11.08, while profit is growing at 21.46%. That gives a PEG of 0.70, which would make Mr. Market think growth is attractively priced. The latest quarter sales of ₹308 Cr and net profit of ₹25 Cr show a business that is moving ahead. Sales growth is 10.41%, so profits are growing faster than revenues—nice to see, but I must ask: is this real long-term demand or just cost discipline? The balance sheet is light: debt/equity 0.22 and ROCE 17.11% indicate efficient use of capital. But the ROE of only 8% tells me this is not a high-return franchise, and the P/B of 4.99 means I'm paying a large premium to book value of ₹3.21. Graham would not like that. The Piotroski F-score of 7/9 is a positive sign—quality of earnings is decent. There is zero dividend, so all my return depends on capital appreciation. Promoter holding at 37.67% is moderate; I'd prefer higher alignment. This is a small IT services firm in a fiercely competitive industry, so moat is thin. My value approach says buy when growth is cheaper than intrinsic worth. At a P/E of 11 with 21% profit growth, the odds are acceptable for a patient investor, but I cannot ignore the low ROE and the absence of a dividend. I'd want to see at least a few more quarters of profit growth matching or exceeding sales growth, and margins holding up, before taking a large position. For now, a small pass, maybe—with watchful eyes.

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