Zaggle Prepaid (ZAGGLE)

FairStock Score: 46/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 47.91% and profit growth of 77.72% show strong momentum.
• ROE of 20.57% with debt/equity of 0.01 indicates efficient capital use and financial safety.
• Piotroski F-Score of 7/9 suggests solid fundamentals.
• PEG ratio of 0.38 implies reasonable valuation relative to growth.
• Promoter holding of 44.13% provides some alignment with minority shareholders.

Concerns

• P/E of 24.08 and P/B of 5.91 leave little margin of safety, especially with book value at only ₹44.31.
• Zero dividend yield means no income support for the investor.
• ROCE of 12.99% lags ROE, raising questions about capital allocation efficiency.
• FairStock Score of 46/100 is mixed, and the stock is well below its 52-week high of ₹417.60.

AI Analysis

Zaggle is the kind of compounder I like to study, but only after checking price. The business is growing quickly: sales up 47.91% and profit up 77.72%, with an ROE of 20.57%. That profit growth outpacing sales suggests operating leverage, and a PEG of 0.38 implies the market is not paying for that growth if it continues. Debt/equity of 0.01 gives enormous financial strength; this is a company that won't keep me awake at night. The Piotroski F-Score of 7/9 also points to sound fundamentals. But Graham taught me that growth is a partner only when bought at reasonable prices. At ₹261.67, the stock trades at 24.08 times earnings and 5.91 times book value. Book value is just ₹44.31, so I am paying a large premium for future growth. The dividend yield is zero; my return must come entirely from earnings growth and eventual reinvestment. Promoter holding at 44.13% is acceptable but not dominant. ROCE of 12.99% is moderate; I would like to see it get closer to ROE, because a gap suggests the balance sheet has not yet been deployed as productively as equity capital. The 52-week range of ₹186.05 to ₹417.60 reminds me how volatile these growth stories can be. FairStock Score of 46/100 is mixed, so this is not a clear-cut Graham bargain. If I owned it, I would watch whether sales growth continues at this pace and whether profit margins hold. I would also monitor promoter holding and any rise in debt. At this price, I would not rush; I would wait for a better margin of safety.

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