High Energy Bat. (504176)

FairStock Score: 45/100 — MIXED

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

Key Financials

Strengths

• ROE of 19.81% and ROCE of 22.95% indicate strong capital efficiency.
• Piotroski F-Score of 7/9 suggests solid recent financial fundamentals.
• Latest quarter net profit margin is about 21.7% on ₹23 Cr sales, showing healthy profitability.
• Sales growth of 85.23% and profit growth of 646.27% reflect strong near-term demand and operating leverage.

Concerns

• P/E of 27.48 and P/B of 7.36 leave little margin of safety at the current price.
• The 646.27% profit growth is likely distorted by a low base and may not be sustainable.
• Dividend yield of only 0.55% means minimal cash returns to shareholders.
• FairStock Score of 45/100 and unavailable promoter holding data reduce conviction.

AI Analysis

Let me walk through this as I would any business. High Energy Bat. has delivered remarkable momentum: sales up 85.23% and profits up 646.27%. But before I get excited, I ask: is this a wonderful business at a fair price? Return on equity of 19.81% and ROCE of 22.95% tell me management is allocating capital reasonably well. The Piotroski score of 7 out of 9 also suggests financial health has improved. Yet the share price of ₹724.55 is within punching distance of its 52-week high, and the market capitalisation of ₹655 Cr means we are paying a P/E of 27.48 and P/B of 7.36 for that performance. Benjamin Graham would warn against paying up for growth that may not be durable. A 646% profit jump is often a low-base effect or a one-time tailwind, not a permanent compounder. The latest quarter's ₹23 Cr sales and ₹5 Cr profit are real, but I need to see many more quarters like that before I call the moat wide. The dividend yield of only 0.55% means the investor must rely almost entirely on capital gains. With a FairStock score of 45/100, the picture is mixed. If this is a quality franchise, earning nearly 20% on equity and 23% on capital employed, then a patient investor can perhaps own it—but only with eyes open. I would not buy on momentum alone. I would wait for either a better price or evidence that growth is backed by durable competitive advantages, pricing power, and honest promoter behaviour. The PEG ratio looks tempting at 0.08, but PEG is only as good as the growth estimate; extrapolating 646% is foolish. In short: an interesting fast grower, but not yet a Graham-style bargain.

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