Systematix Corp. (SYSTMTXC)
CyclicalFairStock Score: 35/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹59.71 |
| Market Cap | ₹816.52 Cr |
| P/E Ratio | 28.43 |
| ROCE | 25.09% |
| ROE | 30.8% |
| Dividend Yield | 0.13% |
| Profit Growth | -96.93% |
| Debt/Equity | 0.06 |
| Sales Growth | 53.3% |
| Promoter Holding | 70.58% |
| 52-Week Range | ₹51.89 — ₹177.9 |
| Sector | Capital Markets |
| Book Value | ₹22.9 |
Strengths
- Very low Debt/Equity of 0.06 indicates a conservative balance sheet for a stockbroker.
- Promoter holding of 70.58% keeps ownership aligned with minority shareholders.
- Historical ROE of 30.80% and ROCE of 25.09% reflect strong past capital efficiency.
- Survived a severe earnings downturn without obvious financial distress, given minimal leverage.
Concerns
- Profit growth has collapsed by -96.93%, and sales have fallen -20.51%, showing sharp business deterioration.
- Price-to-book of 10.09 against book value of ₹7.38 leaves little downside protection.
- Piotroski F-Score of 3/9 suggests weak operating health and worsening fundamentals.
- Dividend yield of 0.13% offers negligible compensation while investors wait for recovery.
AI Analysis
At ₹74.44, the market prices Systematix at ₹1,030 crore. A stockbroker's earnings are a cyclical animal; in a dull quarter, sales of ₹34 crore produced just ₹1 crore of net profit. TTM profit has fallen almost 97%, so the headline P/E of 35.74 is not a sign of quality but of collapsing earnings. Book value is only ₹7.38, yet I am asked to pay 10 times that. That is a Graham warning: no margin of safety. ROE of 30.80% and ROCE of 25.09% look brilliant, but they are backward-looking and distorted by a tiny equity base; when earnings normalise, these numbers can reverse violently. The balance sheet is clean — D/E of 0.06 — and promoter holding at 70.58% aligns owners with us. Piotroski F-score of 3/9 tells me fundamentals are deteriorating, not improving. Sales growth is -20.51%, and the latest quarter's profit of ₹1 crore is barely a rounding error against the ₹1,030 crore market cap. I cannot call this an investment; it is a speculation on a rebound in broking volumes. In stockbroking, there is no durable moat unless the firm has a low-cost franchise or sticky client assets; nothing here proves that. The 52-week range of ₹51.89 to ₹177.90 shows a classic cyclical swing. I would wait for a higher F-score, stabilised profits, and a price closer to book value or a clear earnings recovery. As Benjamin Graham said, price is what you pay, value is what you get. Here the price demands future perfection, while the present financials demand caution.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer