Guj. Petrosynth. (506858)

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 first glance, Guj. Petrosynth has the classic Graham look: a market cap of just ₹37 Cr, a price of ₹62.35, and a book value of ₹82.19. That means I am paying only 76 paise for every rupee of stated net assets. That is a real margin of safety, provided the assets are worth what the balance sheet says. But Buffett would quickly ask: what can those assets earn? The answer is not attractive. ROE is only 4.97% and ROCE 4.45%. This is not a wonderful business; it's a mediocre asset at a possible bargain. The growth numbers look spectacular — sales up 70.73%, profit up 90.57% — but the scale is tiny: latest quarter sales ₹7 Cr, net profit ₹1 Cr. In a company this small, percentage growth can be meaningless; one order or one cost cut can distort the picture. The Piotroski F-score of 7/9 gives some comfort about financial statement quality, and a PEG of 0.18 suggests Mr. Market is paying very little for the recent growth. Yet the P/E of 14.8 on a ₹37 Cr market cap implies earnings around ₹2.5 Cr. With zero dividend, I am relying entirely on asset realisation or business improvement. I would treat this not as a compounder but as a small asset play with cyclical exposure. I need several more quarters of proof before I call it an investment.

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