Delton Cables (504240)

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

Key Financials

Strengths

• 42.28% sales growth demonstrates strong demand pull
• 23.04% ROE and 19.44% ROCE show efficient use of capital
• Piotroski F-Score of 7/9 points to healthy fundamentals
• PEG of 0.82 suggests value if earnings catch up with sales growth
• P/E of 22.32 is not excessive for a fast-growing small-cap

Concerns

• Latest quarter net profit of ₹4 Cr on sales of ₹268 Cr translates to a very thin ~1.5% net margin
• Profit growth of 11.90% is far below sales growth of 42.28%, indicating margin/cost pressure
• Debt/Equity and promoter holding are not disclosed, leaving leverage and governance unknown
• Price is down from the 52-week high of ₹824, and P/B of 4.64 leaves limited margin of safety

AI Analysis

For a small-cap electrical equipment maker, the first thing that strikes me is the growth. Sales jumped 42.28%, and with ROE at 23.04% and ROCE at 19.44%, capital appears to be working hard. A Piotroski F-score of 7 out of 9 also suggests the balance sheet is in decent shape. But I must be honest: I do not see a wide moat. Cables are fairly commoditised, and the latest quarter's ₹268 Cr of sales producing just ₹4 Cr of profit shows how thin margins really are. That is roughly a 1.5% net margin, which leaves little room for error. Profit growth of only 11.90% while sales grew 42.28% tells me revenue is not falling to the bottom line. At ₹505 with a P/E of 22.32, the market is pricing in continued expansion; at 4.64 times book value, there is no Graham-style margin of safety. The PEG of 0.82 looks attractive only if the high sales growth eventually shows up in earnings. If it doesn't, this is expensive. With debt-to-equity not given and promoter holding not given, I cannot judge counterparty risk or alignment. The stock has swung between ₹336 and ₹824, reinforcing an inherently cyclical business. I would keep this on a watchlist, not buy blindly.

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