Guj. Petrosynth. (506858)
Asset PlayScore breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹62.35 |
| Market Cap | ₹37.22 Cr |
| P/E Ratio | 14.8 |
| ROCE | 4.45% |
| ROE | 4.97% |
| Dividend Yield | 0% |
| Profit Growth | 90.57% |
| Debt/Equity | — |
| Sales Growth | 70.73% |
| 52-Week Range | ₹50 — ₹81.51 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹82.19 |
Strengths
- Trading at P/B of 0.76, a 24% discount to book value of ₹82.19 per share.
- Revenue grew 70.73% and profit grew 90.57%, showing recent business momentum.
- Piotroski F-Score of 7/9 suggests solid financial health and improving fundamentals.
- PEG of 0.18 indicates the market is paying little for the recent growth if it can continue.
Concerns
- ROE of 4.97% and ROCE of 4.45% are far below what a quality business should earn on capital.
- Dividend yield is zero, so there is no cash return while waiting for the value to be recognised.
- Scale is very small — latest quarter sales ₹7 Cr and net profit ₹1 Cr — making high growth rates volatile and unreliable.
- Promoter holding and debt/equity are not disclosed, leaving governance and leverage risks unassessed.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer