XT Global Infot. (XTGLOBAL)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹30.71 |
| Market Cap | ₹411.89 Cr |
| P/E Ratio | 36.56 |
| ROCE | 7.55% |
| ROE | 2.63% |
| Dividend Yield | 0.33% |
| Profit Growth | 19.75% |
| Debt/Equity | 0.24 |
| Sales Growth | 8.21% |
| Promoter Holding | 62.81% |
| 52-Week Range | ₹25.2 — ₹46.25 |
| Sector | IT - Software |
| Book Value | ₹10.88 |
Strengths
- Revenue grew 88.56%, showing strong business momentum and market demand.
- Low debt-to-equity of 0.26 keeps the balance sheet conservative.
- Promoter holding at 62.81% aligns management with minority shareholders.
- Company is still profitable, with latest quarter net profit of ₹4 Cr on ₹92 Cr sales.
Concerns
- Profit declined 20.65% despite huge sales growth, indicating severe margin compression.
- P/E of 56.45 is expensive for a business with ROE of only 2.63% and ROCE of 7.55%.
- Piotroski score of 4/9 and FairStock score of 24/100 point to weak fundamental health.
- Dividend yield of 0.13% provides almost no income cushion for shareholders.
AI Analysis
When I look at XT Global, I see a business growing revenue but not creating owner earnings. Sales jumped 88.56%, yet profits fell 20.65%. That tells me the company is buying growth, perhaps at the expense of margins, and the latest quarter's ₹92 Cr revenue produced only ₹4 Cr net profit. A 56.45 P/E on this earnings quality is far too rich. Benjamin Graham would ask: what is the earning power? ROE is just 2.63% and ROCE 7.55% - both well below what a good business should earn. Even the P/B of 2.33 means I am paying more than twice book value for mediocre returns. On the positive side, debt is low at 0.26 times equity, and promoter holding of 62.81% is encouraging. But a Piotroski score of 4/9 and a FairStock score of 24/100 are warning signs. The PEG of 0.64 is a trap because it uses that 88.56% revenue growth; profit growth is negative, so low PEG is false comfort. Dividend yield of 0.13% means I am not being paid to wait. The 52-week range shows the stock has already fallen from ₹46.25 to ₹33.74, and with deteriorating fundamentals, I cannot call this a bargain. I prefer businesses with predictable earnings, high returns on capital, and honest pricing. XT Global may one day become a good compounder if margins recover, but today the margin of safety is absent. This is a possible turnaround situation, not a quality compounder. I will keep it on my watchlist, not in my portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer