Mindteck (India) (MINDTECK)

FairStock Score: 34/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹206.60, Mindteck trades at a market cap of ₹668 Cr. In the latest quarter it did ₹100 Cr of sales and ₹5 Cr of net profit, roughly a 5% margin. That is acceptable if the business is growing, but Mindteck's sales shrank 3.42% while profit rose 6.18%. As Graham would say, earnings should come from expanding economic activity, not just from cost cuts. The balance sheet is sound: debt-to-equity of only 0.02, ROE of 11.37%, and ROCE of 15.54%. A 64.20% promoter holding aligns management with minority shareholders, and a Piotroski F-score of 6/9 suggests reasonable financial health. Still, I cannot call this a wonderful business. Software consulting services often lack a durable moat; clients can shift spending, and revenue can plateau. The 52-week range of ₹145.13 to ₹307.68 tells me this is not a steady compounder but a volatile small-cap. At a P/E of 22.21 and P/B of 3.95, you are paying a rich multiple for a low-return equity. With a dividend yield of only 0.48%, there is little income support while you wait. The PEG of 3.59 indicates the market is paying far too much for single-digit profit growth. The FairStock Score of 16/100 flags risk. In Buffett's terms, price is what you pay, value is what you get. For a mid-sized IT firm with contracting sales, no clear pricing power, and no meaningful growth, I need a margin of safety. At 22 times earnings, I do not see it. I would wait for either a much lower price or clear evidence that revenue growth has returned. Today this is a slow grower at best, not a compounding machine.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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