Signpost India (SIGNPOST)
Fast GrowerFairStock Score: 44/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹267.4 |
| Market Cap | ₹1,429.25 Cr |
| P/E Ratio | 19.42 |
| ROCE | 15.41% |
| ROE | 23.17% |
| Dividend Yield | 0.19% |
| Profit Growth | 22% |
| Debt/Equity | 0.7 |
| Sales Growth | 10.6% |
| Promoter Holding | 67.74% |
| 52-Week Range | ₹191.41 — ₹336.75 |
| Sector | Media |
| Book Value | ₹53.99 |
Strengths
- Return on equity of 23.17% indicates strong capital efficiency
- Sales growth of 26.85% shows healthy demand for services
- F-Score of 7/9 suggests solid financial fundamentals
- Promoter holding at 67.74% aligns management with shareholders
- PEG of 0.22 reflects low valuation relative to recent profit growth
Concerns
- P/E of 26.97 and P/B of 6.60 leave little room for error
- Profit growth of 214.96% is likely unsustainable and may normalize
- Debt-to-equity of 0.82 and ROCE lower than ROE indicate leverage-driven returns
- Dividend yield of 0.20% offers negligible income cushion
AI Analysis
When I look at Signpost India, I see a business growing sales at nearly 27%, with a return on equity of 23.17% and a Piotroski score of 7 out of 9. That tells me the company is generating real profits and not just window-dressing. But I must be careful: profit growth of 214.96% is far above sales growth, and that kind of leap is often a base effect, not a durable trend. The latest quarter shows sales of ₹142 Cr and net profit of ₹18 Cr, which is solid, but I would want to see this repeated quarter after quarter before I call it a wonderful business. The moat in advertising and media agencies is weak—clients can shift spend, and margins can be squeezed. Promoter holding at 67.74% is reassuring, aligning interests with minority shareholders. However, the balance sheet is not pristine: debt-to-equity is 0.82, and ROCE at 15.41% is notably lower than ROE, which tells me leverage is flattering returns. At ₹268.68, the stock trades at 26.97 times earnings and 6.60 times book value. That is not a bargain by Graham standards. The dividend yield is a mere 0.20%, so you are not getting paid to wait. The PEG ratio of 0.22 looks attractive only if you believe the recent profit growth is sustainable, which I doubt. This is a fast grower with good execution, but the margin of safety is thin. I would wait for a better price or evidence that growth is built on competitive durability, not just a cyclical advertising upswing.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer