W H Brady (501391)

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

Key Financials

Strengths

• Revenue growth of 14.83% shows the topline is expanding.
• ROCE of 12.86% indicates the operating business generates a decent return on capital employed.
• Latest quarter net profit of ₹3 Cr on ₹27 Cr sales implies an ~11% net margin, a possible early sign of earnings recovery.
• Book value of ₹192.12 provides tangible asset backing, though at a significant valuation premium.

Concerns

• ROE of only 3.62% is poor for shareholders.
• Profit growth is -12.12%, showing revenue growth is not translating into earnings.
• Valuation is rich: P/E of 26.19 and P/B of 3.03, with zero dividend yield.
• Piotroski F-score of 4/9 suggests weak overall financial health.

AI Analysis

At ₹583, W H Brady trades at a ₹152 crore market cap. Let me look at this with Graham's eyes. The P/E is 26.19, and for that price I get a business earning only 3.62% on equity. That is not a satisfactory compounding machine. Book value is ₹192.12, so I am paying more than three times book with no dividend to compensate. The zero dividend yield is a clear demerit for patient value seekers. Revenue grew 14.83%, which is pleasing, but profit fell 12.12%. That tells me the company is buying growth without converting it to the bottom line. ROCE is 12.86%, so the operating capital returns are respectable, but the gap between ROCE and ROE needs explanation. Debt/equity is not provided, so I cannot judge financial risk—I dislike investing in uncertainty. The latest quarter shows ₹27 crore sales and ₹3 crore net profit, an 11% margin. If that is sustainable, the earnings picture could improve, but one quarter is not a trend. The Piotroski F-score of 4 out of 9 reinforces my caution: the fundamental health is mediocre. The stock has fallen from ₹853.90 to ₹583, but a falling price alone is not a margin of safety. The PEG ratio of 1.77 is not meaningful when profits are declining. I would call this a possible turnaround, not a proven one. I need to see profit growth turn positive, sustained quarterly earnings, and clarity on leverage before committing capital. At 26 times earnings and 3 times book, with ROE of 3.62%, Mr. Market is asking far too much for a business that has not yet demonstrated dependable profitability. Better to wait and let the data convince me.

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