Mitcon Consult. (MITCON)

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

Key Financials

Strengths

• Trades below book value: P/B 0.89 with book value ₹91.55 vs price ₹81.55
• Sales growth of 19%, with latest quarter revenue of ₹27 Cr and net profit of ₹2 Cr
• Piotroski F-Score of 7/9 suggests improving financial fundamentals
• Debt/equity of 0.63 is moderate and manageable
• Large reported profit growth of 419%, though from a likely low base

Concerns

• Promoter holding is 0.00%, a serious governance and alignment red flag
• Return on capital is modest at 8.59% ROCE; ROE is not available
• No dividend, so minority shareholders get no income while waiting
• P/E of 20.14 and PEG of 0.09 rely on distorted profit growth from a low base

AI Analysis

At ₹81.55, Mitcon has a market cap of just ₹102 crore and a book value of ₹91.55. Buying it is not expensive on assets: the P/B works out to 0.89. But price is what you pay, value is what you get. What do I get? A consulting business that earns an ROCE of 8.59%—respectable, not wonderful. Debt/equity of 0.63 is manageable, and the Piotroski score of 7/9 hints at improving financial health. Sales grew 19%; latest quarter revenues were ₹27 crore with net profit of ₹2 crore, a roughly 7% margin. The reported profit growth of 419% sounds mouth-watering, but a 419% jump from a tiny base is meaningless to me. The PEG of 0.09 is an optical illusion. I would not value this business on that figure. The biggest warning flag is promoter holding: zero percent. No promoter skin in the game is a serious governance concern in Indian small caps. Also, there is no dividend; as a minority shareholder, I earn nothing while waiting. The balance sheet gives some cushion—book value exceeds price—but a company can trade below book for a long time if returns on capital stay mediocre. I cannot calculate ROE from the data, which in itself tells me the evidence is incomplete. If management can prove capital allocation and maintain 19% revenue growth with stable margins, this could re-rate. But with no promoter ownership, no dividend, and only 8.59% ROCE, I am not ready to commit. This is a possible turnaround, not a compounder I can trust yet. I'd demand a wider margin of safety or clearer proof of durable earning power.

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