Him Teknoforg. (505712)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹163.45, Him Teknoforg sells at roughly 0.72 times book value of ₹225.84. That catches my eye. Graham taught me to look for a margin of safety, and buying a rupee of assets for 72 paise is a starting point. But a low price is only part of the story. This business earns just 6.29% on equity and 9.33% on capital; those are mediocre returns. A wonderful business must produce high returns on tangible assets, and this one does not yet. The latest quarter shows ₹109 Cr sales but only ₹3 Cr net profit—a razor-thin margin. Profit grew 125% on paper, but that likely reflects a low base, and PEG of 0.20 must be viewed with suspicion rather than enthusiasm. Sales growth of 23.48% is encouraging. If the company can turn volume into better margins, the operating leverage will help. The Piotroski F-score of 7 suggests healthy fundamental trends and improving financials. Auto components is a cyclical, competitive business with little pricing power. I see no durable moat yet. The stock trades below the bottom of its 52-week range, which tells me Mr. Market is worried about order visibility and margins. For a value investor, this is not a Buffett-style compounder; it is a possible turnaround or asset play. I would not pay up. I would want proof that the profit margins are sustainable across cycles, no hidden debt, and management allocates capital wisely. The upside could be significant if earnings continue to recover, but I must demand a strong margin of safety and monitor execution.

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