TGV Sraac (507753)

FairStock Score: 46/100 — MIXED

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

Key Financials

Strengths

• Trades below book value: P/B 0.83, price ₹89.93 vs book value ₹108.96, offering asset-side margin of safety.
• Cheap on earnings: P/E 7.33 and PEG 0.41, with latest profit growth of 17.94%.
• Reasonable returns: ROE 10.96% and ROCE 10.44%, with Piotroski F-score 6/9 indicating broadly sound financials.
• Profit growth despite declining sales suggests some cost or margin discipline.

Concerns

• Commodity chemical business inherently lacks pricing power and a durable moat.
• Sales declined 1.50%; recent profit growth may be cyclical or cost-driven rather than demand-driven.
• Wide 52-week range of ₹78.10 to ₹142.25 highlights earnings volatility and cyclicality.
• Debt/equity and promoter holding data are not available, limiting a full assessment.

AI Analysis

Let me look at TGV Sraac the way I look at any business. A price of ₹89.93 against book value of ₹108.96 means I am paying 83 paise for a rupee of net assets. That is the sort of margin of safety that interests me. The P/E is 7.33 and the PEG ratio is 0.41. If the recent profit growth of 17.94% has any durability, the market is not paying much for earnings. However, I have to remind myself that this is a commodity chemical company. Last year sales fell 1.50%, and the latest quarter shows ₹448 Cr sales and ₹28 Cr net profit. There is no pricing power in commodities; the only edge is low-cost operations. ROE of 10.96% and ROCE of 10.44% are reasonable but not exceptional. The Piotroski score of 6 out of 9 suggests financial health is all right, but not superb. I would demand a higher return on equity for a business with no moat. The dividend yield is only 1.16%, so I am not being paid much to wait. The 52-week range of ₹78.10 to ₹142.25 tells me this is a cyclical stock that can move with chemical prices and input costs. Buying below book gives a cushion, but a cheap commodity business can stay cheap if earnings deteriorate. I need to see whether the recent profit improvement is from operational efficiency or one-off gains. Conservatively, I classify this as a Cyclical. I would only invest with a long horizon, knowing that sales must recover, margins must hold, and debt must stay low. I would monitor every quarterly result before acting.

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