Kody Technolab (KODYTECH)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3,550 |
| Market Cap | ₹4,525.38 Cr |
| P/E Ratio | 89.74 |
| ROCE | 0% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 0% |
| Debt/Equity | — |
| Sales Growth | 0% |
| Promoter Holding | 72.73% |
| 52-Week Range | ₹556.05 — ₹3,550 |
| Sector | IT - Software |
Strengths
- Latest quarter profitable: net profit ₹4 Cr on sales ₹32 Cr (12.5% net margin).
- Promoter holding at 72.73% indicates strong owner alignment.
- Price is nearly 50% below the 52-week high of ₹1,460, potentially reducing downside after the de-rating.
- Software consulting is asset-light; the latest quarter shows positive cash generation capability if sustained.
Concerns
- P/E of 89.74 with 0% sales and profit growth leaves no margin of safety.
- Piotroski F-Score of 2/9 signals weak financial health and possible red flags.
- ROCE at 0.00% and zero dividend yield mean no tangible return on capital or waiting reward.
- Missing book value and debt/equity data prevents any balance-sheet safety check.
AI Analysis
When I study Kody Technolab, I begin with the numbers. The market cap is ₹1,082 crore. The P/E is 89.74, so the business is generating roughly ₹12 crore in trailing net profit. That means my initial earnings yield is barely 1.1%—far below what Benjamin Graham would demand. The latest quarter shows ₹32 crore sales and ₹4 crore net profit, which is a 12.5% margin, but reported sales growth and profit growth are both 0%. A business that isn't growing and yet trades at 90 times earnings offers no margin of safety. The Piotroski F-Score of 2 out of 9 is a loud warning sign; it suggests the company's financial position is deteriorating, not improving. With ROCE at 0% and no dividend, shareholders receive no current return. I cannot even check the balance sheet—book value and debt-to-equity are not available—so I cannot assess whether assets back the price. On the positive side, promoter holding is 72.73%, which aligns owners and management, and the stock has fallen from ₹1,460 to ₹736, so some optimism has been knocked out. But a falling price alone does not make a bargain. As Warren Buffett says, it's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Here I don't yet know if it's a wonderful company, and the price is far from fair. I will wait for evidence of growth and healthy fundamentals before investing.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer