Orient Tech. (ORIENTTECH)
TurnaroundFairStock Score: 6/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹258.55 |
| Market Cap | ₹1,184.31 Cr |
| P/E Ratio | 255.99 |
| ROCE | 26.52% |
| ROE | 7.37% |
| Dividend Yield | 0.55% |
| Profit Growth | -48.4% |
| Debt/Equity | 0.19 |
| Sales Growth | -4.1% |
| Promoter Holding | 73.24% |
| 52-Week Range | ₹220.8 — ₹466.73 |
| Sector | IT - Services |
| Book Value | ₹73.5 |
Strengths
- Debt/Equity of 0.06: negligible leverage, low bankruptcy risk
- Promoter holding of 73.24%: strong insider ownership and alignment
- ROCE of 26.52%: historically efficient use of capital
- Book value of ₹72.51 provides some tangible asset support
Concerns
- Latest quarter net loss of ₹15 Cr and profit growth of -66.19%
- Sales growth of -4.17%: top line is shrinking
- Piotroski F-Score of 3/9: poor financial health and deteriorating fundamentals
- P/E of 32.45 and P/B of 3.84 offer no valuation cushion for weak earnings
AI Analysis
At ₹278.35, Orient Tech carries a market cap of ₹1,360 Cr. Benjamin Graham would ask: is there a margin of safety? The P/E of 32.45 looks absurd when profit growth is -66.19% and the latest quarter is a net loss of ₹15 Cr. This is not the kind of business I want to buy. A low debt-to-equity of 0.06 is good, and a 73.24% promoter holding aligns owners, but ownership alone does not make a good investment. The ROE is only 7.37%, while book value is ₹72.51. Paying 3.84 times book for a shrinking, loss-making business offers no margin of safety. The Piotroski F-Score of 3 out of 9 reinforces my concern: the financial health is deteriorating. Sales are down 4.17%, and profits have collapsed by 66.19%. The ROCE of 26.52% is interesting, but with a current loss and weak demand, past returns are not dependable. This feels like a possible turnaround, not a predictable compounder. Buffett's rule is simple: be fearful when others are greedy and greedy only when there's a clear edge. Here, the 52-week range of ₹220.80 to ₹466.73 shows the market has repriced the stock, and FairStock Score of 6/100 calls it risky. I need evidence of a recovery—positive quarterly profit, stabilising sales, and improving F-Score—before considering even a small stake. Until then, it's a pass. In value investing, patience matters more than action, and avoiding permanent capital loss comes first.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer