Slone Infosys. (SLONE)

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

Key Financials

Strengths

• ROCE of 37.93% indicates high return on capital employed, if sustainable.
• Promoter holding of 73.33% aligns promoter interests with minority shareholders.
• P/E of 13.01 is modest for a company still earning profits despite sector headwinds.
• Latest quarter net profit of ₹5 Cr on ₹101 Cr sales shows the business remains profitable at the net level.

Concerns

• Sales declined 34.17% YoY, signalling serious demand or competitive pressure.
• Piotroski F-Score of 3/9 indicates weak financial health and possible red flags.
• No ROE, book value, or debt/equity data disclosed, limiting fundamental analysis.
• Dividend yield of 0.28% gives negligible income while waiting for a recovery.

AI Analysis

Looking at Slone Infosys, my first reaction is caution. The numbers tell a conflicting story. On paper, a P/E of 13.01 for a ₹95 crore market cap is not obviously expensive, and a ROCE of 37.93% is impressive. But Graham taught me to treat the rearview mirror with suspicion. Sales have collapsed by 34.17%, yet profit declined only 2.54%. That suggests cost-cutting, not growing intrinsic value. In a hardware and equipment business, demand can be cyclical, but a one-third drop in revenue is a serious red flag. I cannot build a castle on sand. The Piotroski F-score of 3 out of 9 reinforces my worry. The company is generating a small net profit—latest quarter ₹5 crore on sales of ₹101 crore—but the fundamental health score is weak. Without book value, ROE, or debt-to-equity data, I cannot judge how much is owed, how much equity cushions the business, or whether the reported return on capital is durable. In Buffett's language, I need to know the moat. Here I don't see one; declining revenue in a competitive hardware space is the opposite of pricing power. Promoter holding of 73.33% is positive—owners' interests are aligned—but high holding alone does not create moat. Dividend yield of 0.28% means shareholders are barely paid to wait. The 52-week range from ₹114.45 to ₹371.45 shows enormous price volatility, reminding me that Mr. Market swings wildly. This might be a turnaround if sales stabilize and margins hold, but the evidence is too thin. I would demand a wider margin of safety before investing. For now, this is a show-me story, not a wonderful business at a fair price.

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