P.E. Analytics (PROPEQUITY)

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

Key Financials

Strengths

• P/E of 13.56 with 14.13% profit growth gives a PEG of 0.96, indicating reasonable valuation for the growth shown.
• Latest quarter net margin is roughly 32% (₹7 Cr profit on ₹22 Cr sales), showing strong earnings conversion.
• ROCE of 21.30% reflects good capital efficiency in a small-cap services business.
• Promoter holding of 75% aligns management interests with long-term minority shareholders.

Concerns

• Sales growth is negative at -4.95%; rising profits on falling revenue may be unsustainable or one-off in nature.
• Zero dividend yield means minority shareholders receive no income while waiting for value to play out.
• Book value, ROE, and debt/equity are not available, so leverage and true balance-sheet strength cannot be assessed.
• Real estate-linked services are inherently cyclical, and the 52-week range of ₹145-268 shows notable price volatility.

AI Analysis

As value investors, we don't chase stories; we weigh numbers. P.E. Analytics, at ₹211.50 with a market cap of ₹187 Cr, is a small real-estate services business. In the latest quarter it did ₹22 Cr sales and ₹7 Cr net profit—a net margin around 32%, exceptional for a services company. Trailing P/E is 13.56, and with profit growth of 14.13%, the PEG ratio sits near 0.96. That is interesting. But I have to ask: what is the quality of that growth? Sales are down 4.95%. Profit is rising while revenue falls—selling less but earning more. That can come from cost discipline, but it can also come from unsustainable project timing or one-off gains. I see no dividend; the owner is paid by reinvestment alone. ROCE of 21.30% suggests the core business earns well on capital. Promoter holding at 75% is reassuring—capricious minority owners don't control the register. The Piotroski score of 6/9 points to acceptable financial health, not pristine. However, I refuse to fall in love with any equity. Real estate services are cyclical; when transaction volumes slow, this business will feel it. The lack of book value and debt/equity data prevents me from calculating the true margin of safety. At this price, the market is not paying a fancy multiple, but 'cheap' is not the same as 'safe'. I need evidence that sales stabilize and margins remain honest. I would want to know why revenue shrank and whether that ₹7 Cr quarterly profit repeats. If the next four quarters show ₹7 Cr profit each on growing sales, this is a bargain. If the sales dip widens, today's apparent value will evaporate. I like the capital efficiency and promoter alignment; I'm wary of a shrinking top line wearing a mask of rising profits.

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