Suyog Telematics (SUYOG)
Slow GrowerFairStock Score: 28/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹831.75 |
| Market Cap | ₹974.57 Cr |
| P/E Ratio | 15.87 |
| ROCE | 13.67% |
| ROE | 9.67% |
| Dividend Yield | 0.12% |
| Profit Growth | -19% |
| Debt/Equity | 0.76 |
| Sales Growth | 30% |
| Promoter Holding | 52.02% |
| 52-Week Range | ₹528 — ₹920.05 |
| Sector | Telecom - Services |
| Book Value | ₹417.18 |
Strengths
- ROCE of 13.67% suggests capital is being deployed reasonably.
- Debt-to-equity of 0.62 is manageable for a capital-intensive telecom infrastructure business.
- Promoter holding of 52.02% aligns owner-operators with minority shareholders.
- Latest quarter net profit of ₹15 Cr on sales of ₹53 Cr shows current operations are profitable.
- Book value of ₹289.62 provides some tangible asset backing.
Concerns
- Profit declined 15.37% while sales grew only 7.81%, indicating margin compression.
- ROE of 9.67% is below what I expect from a quality compounder.
- P/E of 24.16 and PEG of 3.09 look expensive given negative profit growth.
- Piotroski F-Score of 4/9 and FairStock Score of 13/100 signal weak fundamentals.
AI Analysis
At first glance, Suyog Telematics looks like the kind of business I'd admire for its tangible infrastructure. The company earns a return on capital of 13.67%, which is respectable, and its debt-to-equity of 0.62 is not alarming. But my old friend Benjamin Graham taught me to weigh facts, not hopes. Sales grew only 7.81%, while profits fell 15.37%. That is a warning sign. A business that cannot turn revenue growth into growing earnings is throwing sand in the gears. ROE of 9.67% is mediocre, especially when the stock trades at 24.16 times earnings and 2.72 times book. The Piotroski F-Score of 4 out of 9 tells me the company's fundamentals are deteriorating, not improving. The dividend yield of 0.25% is negligible; as a shareholder, I receive almost no cash to wait for better days. With a PEG ratio over 3, the market is paying a premium for growth that has not shown up in the numbers. Mr. Market is offering ₹787.55 for a modest telecom infrastructure business with a market cap of ₹830 crore. There may be value in the assets someday, but book value of ₹289.62 gives me no margin of safety at this price. The latest quarter did show net profit of ₹15 crore on ₹53 crore sales, so the business is not broken. But I cannot call this a wonderful company at a fair price; it looks like a fair company at a price that demands too much.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer