Jaipan Industrie (505840)

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

Key Financials

Strengths

• Low trailing P/E of 5.08 offers a statistical entry point if earnings can be sustained.
• Sales growth of 11.25% shows some real demand for the household appliances franchise.
• Piotroski F-Score of 7/9 points to improving fundamental health across recent signals.
• PEG of 0.08 reflects extreme apparent undervaluation on reported profit growth, warranting deeper study.
• Small market cap of ₹23 Cr means modest absolute improvement in profit can move per-share value meaningfully.

Concerns

• Latest quarter net profit is ₹0 Cr on ₹9 Cr sales, implying no current margin cushion.
• P/B of 4.94 for a company earning only 6.46% ROE is a dangerous premium; book value of ₹7.53 gives little downside support.
• Zero dividend yield means minority shareholders receive no cash return while waiting for a revival.
• 120% profit growth seems to be from a low or volatile base, making the PEG of 0.08 unreliable.

AI Analysis

At ₹37.19, Jaipan Industrie looks statistically cheap: P/E of 5.08 and a twenty-percent earnings yield would tempt any Graham-style investor. But I have learned that a low multiple is only an invitation to check the underlying business, not a conclusion. Book value is ₹7.53, yet the price is 4.94 times book while the company earns only 6.46% on tangible equity and 8.73% on capital employed. That is a poor return for the price paid; if it continues, the premium to book will erode. The 120% profit growth and single-digit PEG of 0.08 are impressive on paper, but the latest quarter shows sales of ₹9 Cr and net profit of ₹0 Cr. That tells me margins are razor-thin or absent today. I cannot bank on a profit explosion from a base that is effectively zero. In household appliances, moats are rare; competition from organized and unorganized players erodes pricing power. Sales grew 11.25%, which is decent, but without margin durability it means little. There is no dividend, so as a minority shareholder I receive no cash return while waiting. I do credit the Piotroski F-Score of 7/9—it suggests improving financial health, and I would like to learn more. But with promoter holding and debt/equity not disclosed, and a market cap of only ₹23 Cr, careful scrutiny and liquidity risk are essential. This may be a turnaround worth watching, not a compounder I can own with confidence yet.

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