Simm. Marshall (507998)

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

Key Financials

Strengths

• ROE of 32.97% with Piotroski F-Score 7/9 indicates efficient capital use and reasonable operational health.
• Sales growth of 21.67% and reported profit growth of 228.79% show strong momentum, though the latter needs scrutiny.
• P/E of 12.65 and PEG of 0.10 appear inexpensive on reported numbers.
• Latest quarter positive with ₹60 Cr sales and ₹4 Cr net profit, implying roughly 6.7% net margin.
• P/B of 2.33 is not excessive given the high ROE.

Concerns

• Zero dividend yield offers no income support to shareholders.
• Current price of ₹89.75 is below the stated 52-week range low of ₹101.40, a serious red flag or possible data inconsistency.
• ROCE of 14.09% is well below ROE, suggesting leverage may be boosting equity returns; debt/equity and promoter holding data are missing.
• Extreme profit growth of 228.79% and PEG of 0.10 may be misleading if the base year was depressed or growth is not sustainable.

AI Analysis

At ₹89.75 and a market cap of only ₹102 Cr, Simm. Marshall is a small auto-components player that looks inexpensive on trailing numbers. A P/E of 12.65 and a P/B of 2.33 are not demanding, especially with a 32.97% ROE. But I must ask: what kind of business am I buying? The sales growth of 21.67% is healthy, and the profit growth of 228.79% leaps off the page. Yet Graham taught me to be suspicious of extreme profit jumps; they often come from a low base or one-off gains. The latest quarter's ₹60 Cr sales and ₹4 Cr profit imply a net margin of about 6.7% — decent, but not enough to justify exponential projections. The PEG ratio of 0.10 assumes that profit growth continues at an unsustainable pace, which is not a conservative assumption. ROCE of 14.09% versus an ROE of 32.97% also tells me the high equity return may be aided by financial leverage. With debt/equity not disclosed, I cannot sign off on the balance-sheet quality. A Piotroski F-Score of 7/9 is encouraging for operational health, but it is one snapshot, not a durable moat. There is no dividend yield, so the small shareholder gets no cash while waiting. What bothers me most is the price: ₹89.75 is below the stated 52-week range of ₹101.40-₹209.00. Either the data is faulty or the market has suffered a severe loss of confidence. Mr. Market can be moody, but I do not like buying a stock that is already beneath its one-year floor. This could be a fast grower if the growth is real and the balance sheet is clean. I would need much more disclosure—promoter holding, debt, cash flows, and customer concentration—before committing capital. For now, it is a potential value catch, but also a potential value trap.

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