Him Teknoforg. (505712)

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

Key Financials

Strengths

• Trades at a 28% discount to book value: P/B 0.72 against book value ₹225.84.
• P/E of 14.70 with profit growth of 125.19% gives a PEG of 0.20, though sustainability must be verified.
• Sales growth of 23.48% and latest quarter sales of ₹109 Cr show business traction.
• Piotroski F-Score of 7/9 suggests improving fundamentals across profitability, leverage, and efficiency.

Concerns

• ROE of 6.29% and ROCE of 9.33% are mediocre; capital is not earning high returns.
• Latest quarter net margin is only about 2.75% (₹3 Cr profit on ₹109 Cr sales), leaving little cushion.
• Auto components is cyclical and competitive; no clear moat exists and profit growth may be a low-base effect.
• Dividend yield is negligible at 0.25%, and promoter holding/debt details are unavailable for full assessment.

AI Analysis

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.

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