TechD Cybersec. (TECHD)

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

Key Financials

Strengths

• ROCE of 81.46% shows exceptional capital efficiency in a capital-light IT services model
• Sales growth of 41.15% and profit growth of 48.83% indicate strong demand and operating leverage
• PEG of 0.67 suggests valuation is not excessive relative to the growth rate
• Piotroski F-Score of 7/9 points to decent financial health and operational quality
• Promoter holding of 63.24% aligns management interests with minority shareholders

Concerns

• P/E of 29.97 leaves little margin of safety; any growth deceleration could hurt the valuation
• No dividend, and no book value, ROE, or debt data are available, limiting a Graham-style balance-sheet assessment
• Price is about 29% below the 52-week high of ₹727.45, showing meaningful share-price volatility
• Small market cap of ₹283 Cr and quarterly sales of ₹18 Cr raise risks around client concentration and competitive pressures

AI Analysis

Let me start with what I like. This is a small, fast-growing IT services business earning a 81.46% return on capital employed. That kind of number tells me management is not burning cash to grow. Sales are up 41.15% and profit is up 48.83%, so earnings are compounding faster than revenue. With a P/E near 30 and growth near 49%, the PEG is about 0.67, which is reasonable if the growth is durable. Latest quarter: ₹18 Cr sales and ₹6 Cr net profit, a 33% margin—that is impressive for an enabled-services firm. The Piotroski score of 7/9 also gives me some comfort on financial health. Promoter holding at 63.24% means the owners have skin in the game. But I must be disciplined. I cannot see book value, ROE, or debt figures, so I cannot assess the balance sheet as Graham would demand. There is no dividend, so my entire return depends on share price appreciation and continued earnings growth. At ₹513.45, the stock is down from ₹727.45 high—still not a bargain at 29.97 times earnings. A high P/E leaves little room for even a temporary slowdown. I also worry about client concentration and competitive pressures in IT-enabled services, though no data is given. I would label this a fast grower, not a stalwart or asset play. The numbers say momentum and efficiency are real, but the lack of balance-sheet transparency and the premium valuation demand that I watch the next few quarters closely. If growth decelerates, the market may re-rate this harshly. I would only buy with a margin of safety—perhaps through a phased entry and only after seeing continued order inflows and cash conversion. For now, it is a high-quality small growth stock, but not a Buffett-style 'sure thing'.

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