Black Box Ltd.
ISIN: INE676A01027 • Market Cap: ₹13,617 Cr
The 5-Pillar Quality Audit for Black Box Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (9.0%), Return on Capital Employed (25.4%), and equity compounding (27.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.97 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (1.9%) and 3Y PAT CAGR (112.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 60.25 vs PEG of 2.94 and Dividend Yield of 0.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 70.0%, backed by 8.2% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 25.4%)
Black Box Ltd. generates exceptional return on capital employed of 25.4%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 27.0%)
Shareholder equity compounds at a healthy 27.0%, exceeding average Indian equity benchmarks.
High-Velocity Profit Compounding (3Y PAT CAGR: 112.1%)
Net earnings have compounded at 112.1% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 0.97)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Topline Stagnation (3Y Sales CAGR: 1.9%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking BBOX against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 66/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Information Technology Sector Peer Comparison
Compare BBOX directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Black Box Ltd. (BBOX)Current | 66/100 | ₹13,617 Cr | 60.25 | 25.4% | 0.97 | — |
| Tata Consultancy Services Ltd. (TCS) | 79/100 | ₹8.27 Lakh Cr | 16.62 | 60.9% | 0.00 | View |
| Infosys Ltd. (INFY) | 78/100 | ₹4.53 Lakh Cr | 14.97 | 41.1% | 0.00 | View |
| HCL Technologies Ltd. (HCLTECH) | 75/100 | ₹3.59 Lakh Cr | 20.60 | 28.7% | 0.00 | View |
| Wipro Ltd. (WIPRO) | 71/100 | ₹1.78 Lakh Cr | 13.45 | 18.7% | 0.19 | View |
| Tech Mahindra Ltd. (TECHM) | 75/100 | ₹1.55 Lakh Cr | 30.20 | 22.0% | 0.00 | View |
Frequently Asked Questions: Black Box Ltd.
Q:What is the 5-Pillar Fundamental Score for Black Box Ltd. (BBOX)?
Black Box Ltd. has a RupeeTools Fundamental Score of 66/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (79/100), Financial Health (68/100), Growth (70/100), Valuation (32/100), and Ownership Quality (72/100).
Q:Is BBOX fundamentally strong for long-term investment?
BBOX currently holds a moderate quality rating of 66/100. While it operates in the Information Technology sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does BBOX pass the Coffee Can Investing filter?
No. BBOX does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does BBOX compare against other Information Technology peers?
Within India's Information Technology sector, BBOX trades at a P/E of 60.25 and generates an ROCE of 25.4%. Compare its 5-Pillar score of 66/100 against top sector peers like Tata Consultancy Services Ltd. (79/100), Infosys Ltd. (78/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.