Brady & Morris (505690)

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

Key Financials

Strengths

• Exceptional capital efficiency with ROE of 75.49% and ROCE of 25.40%
• Healthy Piotroski F-Score of 7/9 suggests decent financial fundamentals
• Sales growth of 16.20% shows demand for its construction vehicles
• Latest quarter remains profitable with ₹23 Cr revenue and ₹2 Cr net profit
• Small-cap niche player with a substantial book value of ₹139.39 per share

Concerns

• Rich valuation: P/E of 39.09 and P/B of 6.07 leave little margin of safety
• Profit growth of only 3.30% lags far behind sales growth, indicating margin pressure
• PEG of 4.01 suggests the price is not justified by earnings growth
• No dividend yield and missing promoter holding/52-week range data reduce transparency

AI Analysis

Let me look at Brady & Morris with a value investor's lens. It is a small-cap construction vehicle company with a market cap of ₹190 Cr, trading at ₹846.10. The first thing that jumps out is the remarkable ROE of 75.49% and ROCE of 25.40%, with no reported debt-to-equity ratio. This is a capital-efficient enterprise, and a Piotroski F-Score of 7/9 suggests the balance sheet is fundamentally sound. However, value is not just quality; it is quality at a price. At a P/E of 39.09 and a P/B of 6.07 against a book value of ₹139.39, the market is paying a rich premium. Sales grew 16.20%, but profit growth lagged badly at only 3.30%, and the latest quarter shows ₹23 Cr of sales translating into just ₹2 Cr of net profit. That is a margin pinch. The PEG ratio of 4.01 tells me the current earnings yield is not supported by the profit growth. There is also no dividend yield, so the minority shareholder's only return is capital appreciation, which is a lot to depend on at this valuation. The absence of promoter holding and 52-week range data makes it hard to fully assess insider conviction and trading context. In Graham's language, this is not a story of margin of safety. It may be a quality business in a cyclical construction-vehicle space, but I would not buy at this price with profit growth this weak. I need either a lower price or a meaningful acceleration in profit growth before this becomes a compelling value proposition.

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