Swadeshi Inds (506863)

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

Key Financials

Strengths

• Trades at ₹2.42 against book value of ₹7.94, a 70% discount (P/B 0.30) if stated book is credible.
• ROE of 17.28% is respectable, indicating decent return on equity despite a small earnings base.
• Sales growth of 519.22% and latest-quarter sales of ₹16 Cr against a ₹3 Cr market cap show significant business activity.
• PEG of 0.22 suggests the market is not pricing in a potential earnings recovery, leaving room for upside if profits materialise.

Concerns

• Latest quarter net profit is about ₹0 Cr on ₹16 Cr sales, and profit growth is -30.16%; revenue expansion is not converting to earnings.
• P/E of 112.40 with zero dividend means no income support and an extreme earnings multiple.
• The 52-week range of ₹44.78-₹164.00 is inconsistent with the current price of ₹2.42, raising data integrity or corporate action concerns.
• Piotroski F-score of 4/9, ROCE of 6.86% versus ROE of 17.28%, and missing debt/promoter data make financial health difficult to assess.

AI Analysis

At ₹2.42, this packaging microcap trades at a third of its ₹7.94 book value, a P/B of 0.30. That looks like Graham-style margin of safety. But price is not value. Sales grew 519%, yet profit fell 30% and the latest quarter shows net profit of about ₹0 Cr on ₹16 Cr of sales. A business cannot be cherished if its expansion burns profits. The P/E of 112.40 confirms earnings are too thin to justify the price on an income basis. ROE is 17.28%, which sounds attractive, but ROCE is only 6.86%; the gap suggests leverage or capital structure issues. Debt/equity is N/A, promoter holding is N/A, and the 52-week range of ₹44.78-₹164.00 is wholly inconsistent with the current ₹2.42 price. That alone makes me question the reliability of this dataset. The Piotroski F-score of 4/9 reinforces a weak or deteriorating financial position. With a market cap of just ₹3 Cr, this is a microcap, so liquidity and governance risks are severe. I would not call this a stalwart or a grower; it is an asset play at best, and only if the book value is real and realizable. The PEG of 0.22 appears to promise cheap growth, but with negative profit growth, that ratio is misleading. No dividend means the shareholder depends entirely on asset realisation or a future earnings revival. As Buffett says, it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Here the price is low, but the quality and transparency are unproven. I would wait for several quarters of positive profit and a credible balance sheet before acting.

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