Plada Infotech S (PLADAINFO)

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

Key Financials

Strengths

• P/E of 5.39 gives an earnings yield of roughly 18.5%, and PEG of 0.79 suggests the market is pricing in less than the current growth rate.
• Piotroski F-score of 7/9 points to sound financial health across profitability, leverage, and efficiency metrics.
• Promoter holding of 62.64% is high, aligning management with minority shareholders.
• Sales and profit are growing at 6.96% and 6.74%, respectively; latest quarter is profitable with ₹35 Cr revenue and ₹1 Cr net profit.
• ROCE of 10.69% is modestly acceptable for a microcap.

Concerns

• Latest quarter net margin is about 2.9%; BPO/KPO economics offer little pricing power.
• No dividend yield, so shareholders receive no cash return while waiting.
• Book value, ROE, and debt/equity are not disclosed/available, making balance-sheet risk hard to judge.
• Current price is roughly 44% below the 52-week high of ₹20.30; negative price action needs explanation.

AI Analysis

Let me apply the same lens I would use for any investment. Plada Infotech is a tiny, understandable BPO/KPO operator, but a small firm in this industry generally lacks a durable competitive edge. Clients can squeeze pricing, and switching costs are often low. The numbers show a mixed picture. At ₹11.25, the market cap is only ₹10 Cr and the P/E is 5.39, implying an earnings yield of roughly 18.5%. That looks cheap, but value is not simply a low multiple; it must be anchored by dependable earnings. Revenue grew 6.96% and profit grew 6.74% — steady, modest, not exciting. The PEG of 0.79 tells me the market is paying less than the growth rate, which is supportive but only if the growth is durable. Latest quarter sales of ₹35 Cr generated just ₹1 Cr profit, a very thin net margin of about 2.9%. A company with this operating leverage can see profits swing sharply if clients reduce orders. On the positive side, the Piotroski F-score is 7/9, suggesting decent financial health, and promoter holding of 62.64% is reassuring. ROCE of 10.69% is acceptable but not a wonderful business. However, I am bothered by missing data: no book value, no ROE, no debt-equity ratio. Graham would refuse to rely on a single year's earnings without knowing the balance sheet strength. There is also no dividend, so the investor must wait indefinitely for price appreciation. The share trades near the lower end of its 52-week range, down from ₹20.30; I need to understand why before calling it a bargain. This is a slow grower with a possible margin-of-safety, but not a clear one.

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