Moschip Tech. (MOSCHIP)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹208.31 |
| Market Cap | ₹4,051.94 Cr |
| P/E Ratio | 152.05 |
| ROCE | 11.93% |
| ROE | 10.26% |
| Dividend Yield | 0% |
| Profit Growth | -77.8% |
| Debt/Equity | 0.22 |
| Sales Growth | -14.3% |
| Promoter Holding | 40.97% |
| 52-Week Range | ₹146.8 — ₹288.45 |
| Sector | IT - Hardware |
| Book Value | ₹21.08 |
Strengths
- Low debt/equity of 0.13 provides financial cushion
- Revenue growth of 18.41% shows business expansion
- ROCE of 11.93% is respectable relative to low leverage
- Promoter holding of 40.97% aligns owner-manager interests
Concerns
- P/E of 91.53 and P/B of 12.84 leave no margin of safety
- Profit fell 15.37% despite sales growth; latest quarter net margin is only ~2.7%
- Piotroski F-Score of 4/9 and FairStock Score of 14/100 indicate high fundamental risk
- Zero dividend yield and PEG of 4.97 make valuation entirely dependent on future optimism
AI Analysis
Let me start with Graham's rule: an investment operation requires safety of principal. At ₹199.35, Moschip Tech offers no safety. The P/E is 91.5 and P/B 12.84, while the company earns only 10.26% ROE and 11.93% ROCE. That is not a wonderful business at a fair price; it is an average business at an extravagant price. Revenue grew 18.41%, but profit fell 15.37%. The latest quarter sums it up: ₹149 crore sales produced just ₹4 crore profit—a 2.7% net margin. The Piotroski F-score of 4/9 reinforces my caution; financial health is subpar. I do give credit for the low debt—D/E of 0.13—and promoter holding of 40.97% does align some interests. But there is no dividend, so the total return depends entirely on a higher price. The PEG of 4.97 tells me the market is paying nearly five times the growth rate for a business whose earnings are shrinking. Book value is only ₹15.53; paying ₹199.35 means 12.84 times book for a 10% ROE. Where is the margin of safety? I don't see it. A 52-week range of ₹146.80 to ₹288.45 shows a volatile, momentum-driven stock, not a compounding machine. Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Moschip is not wonderful, and the price is far from fair. I cannot value it with conviction, so I must pass. If the business improves and profits catch up to sales, I will look again—but only at a price that leaves room for error.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer