Netweb Technol. (NETWEB)

FairStock Score: 49/100 — MIXED

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

Key Financials

AI Analysis

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

Let me begin with the business. Netweb displays many qualities I admire: return on equity of 33.53% and return on capital employed of 32.45%, with debt-to-equity of just 0.01. That is a highly profitable enterprise that does not depend on borrowed money. Promoter holding of 71% aligns owners and management. The Piotroski F-score of 7/9 and Altman Z-score of 18.31 indicate a financially sound operation. Sales grew 82.40% and profit grew 76.42%, and the latest quarter shows sales of ₹805 crore and net profit of ₹73 crore, so this is clearly a fast grower with momentum. Free cash flow of ₹98 crore is positive, though modest beside the ₹21,987 crore market capitalisation. But here my enthusiasm stops. At ₹3,897.80, the stock trades at 123.64 times earnings and 41.85 times book value. Even extraordinary growth cannot justify such a price unless it continues flawlessly for many years. My conservative Graham number is ₹456.03, and a discounted cash flow view gives ₹924.95; both imply the market is paying far more than a value investor should. The margin of safety is deeply negative at -746.74%. The dividend yield of 0.06% means shareholders receive almost no cash while waiting. With a PEG ratio of 4.22, the growth is more than fully priced. I would rather miss this wonderful company than overpay and hope for perfection.

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