Thacker & Co. (509945)

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

Key Financials

Strengths

• Low headline P/E of 5.28 offers apparent cheapness if earnings are sustainable.
• Piotroski F-score of 6/9 suggests reasonably healthy financials.
• Book value of ₹411.25 provides some tangible asset backing.
• Profit grew 2.11% despite a sales decline, showing some resilience.

Concerns

• Earnings quality is questionable: quarterly sales of ₹1 Cr versus net profit of ₹4 Cr implies non-operating or investment gains.
• ROE of 9.24% and ROCE of 2.86% indicate mediocre capital productivity.
• P/E of 5.28 is inconsistent with ROE/book value; the implied earnings gap needs explanation.
• No dividend and a PEG of 2.50 make it unattractive for income or growth investors.

AI Analysis

At ₹1,097.90, Thacker & Co. has the optics of a bargain—P/E of 5.28 and no debt burden—but the more I dig, the more questions I have. The company reported only ₹1 Cr of sales last quarter, yet claimed ₹4 Cr of net profit. Where is that profit coming from? When a financial-services firm earns more than its sales, it usually means investment gains, not durable operating earnings. Graham taught me to separate investment income from true earning power. The ROE of 9.24% and ROCE of 2.86% hardly scream wonderful business. On book value of ₹411.25, the price of ₹1,097.90 means I am paying 2.67 times net assets—not a margin of safety. Worse, the low P/E does not reconcile with the stated ROE. A 5.28 P/E implies roughly ₹24 Cr of earnings, while a 9.24% ROE on ₹411.25 book value implies roughly ₹4 Cr. That discrepancy is a red flag: the headline P/E may be misleading. Sales are shrinking -3.82%, profit growth is only 2.11%, and with a PEG of 2.50, I am paying up for very little growth. No dividend means I get no compensation while waiting. The Piotroski score of 6/9 is passable, but it doesn't cure the earnings-quality problem. This stock swung from ₹700 to ₹1,800 in a year—a trader's vehicle, not a compounding machine. I prefer predictable businesses with consistent sales and sensible returns on capital. Thacker & Co. might be an asset situation, but at 2.67 times book and unclear earnings, it fails my margin-of-safety test. I'll keep it on my watchlist, not in my wallet.

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