Smartworks Coworking Spaces Ltd.
ISIN: INE0NAZ01010 • Market Cap: ₹5,727 Cr
The 5-Pillar Quality Audit for Smartworks Coworking Spaces Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (64.2%), Return on Capital Employed (7.8%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 3.83 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (40.3%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 205.47 vs PEG of 2.74 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 58.3%, backed by 9.2% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 40.3%)
Revenue has expanded at 40.3% CAGR over 3 years, signaling industry market-share gains.
Consistent Market Standing (Mid Cap)
Established player in the Services sector with an overall fundamental quality score of 58/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 7.8%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 3.83)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Priced for Perfection (P/E: 205.47)
A steep valuation multiple of 205.47 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking SMARTWORKS 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 58/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Services Sector Peer Comparison
Compare SMARTWORKS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Smartworks Coworking Spaces Ltd. (SMARTWORKS)Current | 58/100 | ₹5,727 Cr | 205.47 | 7.8% | 3.83 | — |
| Adani Ports and Special Economic Zone Ltd. (ADANIPORTS) | 71/100 | ₹3.87 Lakh Cr | 29.51 | 11.6% | 0.57 | View |
| InterGlobe Aviation Ltd. (INDIGO) | 53/100 | ₹2.00 Lakh Cr | — | 5.7% | 0.26 | View |
| GMR Airports Ltd. (GMRAIRPORT) | 73/100 | ₹1.08 Lakh Cr | 225.70 | 5.8% | -15.03 | View |
| JSW Infrastructure Ltd. (JSWINFRA) | 68/100 | ₹76,925 Cr | 51.79 | 13.1% | 0.59 | View |
| Container Corporation of India Ltd. (CONCOR) | 66/100 | ₹39,147 Cr | 31.52 | 13.5% | 0.00 | View |
Frequently Asked Questions: Smartworks Coworking Spaces Ltd.
Q:What is the 5-Pillar Fundamental Score for Smartworks Coworking Spaces Ltd. (SMARTWORKS)?
Smartworks Coworking Spaces Ltd. has a RupeeTools Fundamental Score of 58/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (53/100), Financial Health (41/100), Growth (99/100), Valuation (25/100), and Ownership Quality (68/100).
Q:Is SMARTWORKS fundamentally strong for long-term investment?
SMARTWORKS currently holds a moderate quality rating of 58/100. While it operates in the Services sector, investors should monitor its debt health before initiating long-term positions.
Q:Does SMARTWORKS pass the Coffee Can Investing filter?
No. SMARTWORKS does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does SMARTWORKS compare against other Services peers?
Within India's Services sector, SMARTWORKS trades at a P/E of 205.47 and generates an ROCE of 7.8%. Compare its 5-Pillar score of 58/100 against top sector peers like Adani Ports and Special Economic Zone Ltd. (71/100), InterGlobe Aviation Ltd. (53/100).
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.