Capillary Technologies India Ltd.
ISIN: INE0ILV01024 • Market Cap: ₹4,059 Cr
The 5-Pillar Quality Audit for Capillary Technologies India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (14.1%), Return on Capital Employed (3.0%), and equity compounding (5.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.05 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (15.6%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 77.49 vs PEG of 1.96 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 51.5%, backed by 22.7% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.05)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 15.6%)
Revenue has expanded at 15.6% CAGR over 3 years, signaling industry market-share gains.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 3.0%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Priced for Perfection (P/E: 77.49)
A steep valuation multiple of 77.49 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking CAPILLARY 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 67/100 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 CAPILLARY directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Capillary Technologies India Ltd. (CAPILLARY)Current | 67/100 | ₹4,059 Cr | 77.49 | 3.0% | 0.05 | — |
| 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: Capillary Technologies India Ltd.
Q:What is the 5-Pillar Fundamental Score for Capillary Technologies India Ltd. (CAPILLARY)?
Capillary Technologies India Ltd. has a RupeeTools Fundamental Score of 67/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (43/100), Financial Health (85/100), Growth (85/100), Valuation (45/100), and Ownership Quality (78/100).
Q:Is CAPILLARY fundamentally strong for long-term investment?
CAPILLARY currently holds a moderate quality rating of 67/100. While it operates in the Information Technology sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does CAPILLARY pass the Coffee Can Investing filter?
No. CAPILLARY does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does CAPILLARY compare against other Information Technology peers?
Within India's Information Technology sector, CAPILLARY trades at a P/E of 77.49 and generates an ROCE of 3.0%. Compare its 5-Pillar score of 67/100 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.