Onward Technolog (ONWARDTEC)
Fast GrowerFairStock Score: 45/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹284.05 |
| Market Cap | ₹623.01 Cr |
| P/E Ratio | 15.01 |
| ROCE | 15.65% |
| ROE | 15.93% |
| Dividend Yield | 2.82% |
| Profit Growth | -0.96% |
| Debt/Equity | 0.16 |
| Sales Growth | 8.25% |
| Promoter Holding | 39.09% |
| 52-Week Range | ₹208.25 — ₹494.9 |
| Sector | IT - Services |
| Book Value | ₹111.41 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
Let me examine Onward Technolog the way I examine any business: what is the earning power, what capital is required, and what price am I paying. At ₹240.67, the market cap is ₹620 Cr and the P/E is 13.08. That is not a demanding multiple. The company earns a return on equity of 15.93% and a return on capital employed of 15.65%, which is respectable for an IT enabled services firm. The balance sheet is conservative: debt to equity is only 0.17, and a Piotroski score of 7/9 suggests financial health is intact. I am also encouraged by a dividend yield of 1.83%. Having said that, I do not see a wide moat. IT enabled services is a competitive field, and customers can shift work to cheaper, younger firms. Sales growth of 9.10% is steady, not exciting. The 104.64% profit growth looks wonderful, but a one-year jump in profit is less reliable than a long history of consistent revenue growth. The PEG of 0.23 uses that elevated profit growth; if earnings settle back to a normal level, the attractive valuation can fade. Last quarter sales were ₹135 Cr and net profit was ₹10 Cr, meaning a margin of roughly 7.4%. This is acceptable but not exceptional. Book value is ₹83.43, so the stock trades at 2.88 times book. For a 15.93% ROE, this is a fair price, not a bargain. Promoter holding of 39.09% is moderate; I would like to see more skin in the game. The 52-week range, ₹208.25 to ₹357.00, reminds me that the market is uncertain about the outlook. All told, this looks like a steady, conservatively financed small-cap. I would not classify it as a fast grower off one profit jump; it is more like a stalwart with moderate growth and a reasonable valuation. I need confirmation that margins and sales growth can continue before I treat it as a clear buy.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer