Computer Point Limited

Consumer Defensive — Education & Training Services · BSE

₹3.14+₹0.02 (+0.64%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Computer Point Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Computer Point Limited engages in the provision of software training services in India.

IndustryEducation & Training Services

SectorConsumer Defensive

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -4.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of -4.0% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ Net margin of 6.2% is slim

Quality vs. Valuation

Company Quality

58/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

83/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

18.5x

3Y Median

1869.7x

40 monthly readings · mean 1933.2x · range 1138.1x–3842.1x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 99% below its 3y median of 1869.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 57% below the peer median of 43.3x.

vs. its own history

Cheap

1869.7x median over 40 months · -99%

vs. sector peers

Cheap

43.3x median of 4 peers · -57%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

0.90

Red Flags

2 items require attention · 2 high

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 99% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 57% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
2ROCE stays above 8%✗ -4.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
3Valuation vs its own median of 1869.7x✓ 18.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹9 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.5x

Fair

Fairly valued against the generic band

P/B Ratio

0.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.17

Profitable

Profitable on a per-share basis

ROE

0.0%

Weak

Weak capital efficiency

ROCE

-4.0%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

110.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-240.3%

Weak

Thin margins leave little room for error

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

263.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.56

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

3.3 / 3.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	—	—	—
EBITDA	-₹2 Cr	-₹1 Cr	-₹1 Cr	-₹1 Cr	—
EBITDA Margin	-11471.8%	-7538.8%	—	—	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹0 Cr	₹0 Cr	+20.5%
EPS	₹0	₹0	—	—	—
ROE	0.0%	0.0%	-0.3%	0.0%	—
ROCE	-4.6%	0.0%	-4.2%	-4.0%	—
Free Cash Flow	-₹2 Cr	-₹3 Cr	-₹2 Cr	-₹2 Cr	—

🟢 PAT (Net Profit) has grown at 20.5% a year over 3 years.

🟡 ROE has held roughly flat at 0.0% over 3 years.

🟡 ROCE has held roughly flat at -4.0% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

57.1%

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed5 general

Computer Point shareholders approve all resolutions at 41st AGM

scanx.trade, 29 Sept

Computer Point Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

Computer Point Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 01 Sept

Computer Point Ltd FY26 Results: Net profit turns positive at ₹1.19 lakh

scanx.trade, 03 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Introducing GPT-6 Sol and Luna

OpenAI, 22 Sept

7 Best Quantum Computing Stocks for 2026 and How to Invest

The Motley Fool, 08 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 3 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑