Transpek Inds. (506687)
CyclicalFairStock Score: 24/100 — RISKY
Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 1/1
Key Financials
| Current Price | ₹1,705.9 |
| Market Cap | ₹952.84 Cr |
| P/E Ratio | 9.34 |
| ROCE | 10.02% |
| ROE | 7.39% |
| Dividend Yield | 2.05% |
| Profit Growth | 1.88% |
| Debt/Equity | — |
| Sales Growth | -6.8% |
| 52-Week Range | ₹864 — ₹1,705.9 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹1,499.92 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At first glance, Transpek looks like the kind of stock Ben Graham would call a bargain. At ₹1,705.90 with a market cap of ₹953 crore, it trades at 9.34 times earnings and 1.14 times book value, and the book value is ₹1,499.92. So you are paying roughly a 14% premium to net assets. But a low multiple is not a free pass. Return on equity is only 7.39% and return on capital employed is 10.02%. In a commodity chemicals business, that tells me there is no economic moat; the company is earning a barely acceptable return on its capital. The latest revenue picture does not comfort me: sales declined 6.80% over the year, and the latest quarter showed ₹158 crore of sales and ₹11 crore of net profit. Profit did grow 1.88%, but flat or rising profit on falling sales can be a result of cost cuts or accounting noise, not sustainable strength. The FairStock Score of 27/100, labeled risky, and a PEG ratio of 4.97 reinforce my caution. The dividend yield of 2.05% provides something to hold onto, and a Piotroski score of 6/9 suggests financial health is okay, but I am missing two crucial pieces: debt/equity and promoter holding, both shown as not available. Without them, I cannot calculate the real risk of leverage or whether owners' interests are strongly aligned. Also, the stock has moved from ₹864 to ₹1,705.90 within the 52-week range, so the market has already re-rated it; a low p/e today may become a lower p/e tomorrow if earnings do not follow. This is a cyclical, plain-vanilla chemical operation, not a growing franchise. I would want evidence of sales recovery, better return on capital, and fuller disclosure before putting my money at work.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer