Ksolves India (KSOLVES)
Slow GrowerFairStock Score: 44/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹277.1 |
| Market Cap | ₹657.29 Cr |
| P/E Ratio | 17.69 |
| ROCE | 157.26% |
| ROE | 93.73% |
| Dividend Yield | 5.41% |
| Profit Growth | 43.2% |
| Debt/Equity | 0.19 |
| Sales Growth | 10% |
| Promoter Holding | 58.94% |
| 52-Week Range | ₹245.75 — ₹353.99 |
| Sector | IT - Software |
| Book Value | ₹12.4 |
Strengths
- Outstanding capital efficiency with ROE of 93.73% and ROCE of 157.26%
- Very low leverage with Debt/Equity of only 0.08
- High promoter holding of 58.94% aligns with minority investors
- Attractive dividend yield of 5.10% for a small-cap
- Sales growth still positive at 12.20%
Concerns
- Profit growth declined by 5.04% despite sales growth, indicating pressure on profitability
- Rich valuation: P/E of 23.62 and P/B of 23.10 leave little margin of safety
- Piotroski F-Score of 4/9 points to deteriorating financial health
- PEG ratio of 1.94 suggests the current price is not cheap given growth
AI Analysis
Let me look at Ksolves as a business, not a ticker. The numbers show a small software consulting firm with extraordinary reported returns: ROE of 93.73%, ROCE of 157.26%, and almost no leverage at 0.08 debt/equity. That is the kind of asset-light franchise that can generate cash if it has a durable niche. Promoters own 58.94%, aligning their interests with minority shareholders in a positive way. The 5.10% dividend yield, combined with a clean balance sheet, suggests a business that returns cash rather than needing to reinvest every rupee. Yet I must temper enthusiasm. Sales grew at 12.20%, but profit fell 5.04%, and the latest quarter's annualised net profit of about ₹40 Cr against a ₹720 Cr market cap means I am paying more than 23 times earnings. With book value at ₹13.83 and price at ₹319.45, the market is pricing in future perfection at 23.1 times book. Graham would ask: where is the margin of safety? Right now I do not see one. The Piotroski F-Score of 4/9 and FairStock Score of 39/100 reinforce my caution: the high returns are not translating into current operating strength. This feels like a high-quality, high-yield small-cap that has stalled at current earnings. I call it a Slow Grower until profits return to growth. I would wait for a lower entry price or clear evidence that the profit decline has reversed. In investing, paying a fair price for a wonderful business is the rule, but 'wonderful' must be proved by actual earnings, not just past averages.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer