G S Auto Intl. (513059)

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

Key Financials

Strengths

• Sales growth of 12.09% and profit growth of 51.02% show recent operating momentum.
• Piotroski F-Score of 7/9 indicates improving financial health across profitability and efficiency measures.
• ROCE of 12.22% is respectable relative to the modest equity base.
• PEG of 0.70 suggests the current earnings growth is not fully priced in if it proves sustainable.

Concerns

• P/E of 22.10 is expensive for a business with ROE of only 9.18%.
• Latest quarter net profit of ₹1 Cr on ₹40 Cr sales shows a fragile 2.5% net margin.
• No dividend yield, so returns depend entirely on uncertain capital appreciation.
• Promoter holding and debt/equity are not available, leaving a transparency gap for minority shareholders.

AI Analysis

This is a tiny auto-component business, and size alone would make me cautious. At ₹38.32 the market cap is only ₹56 crore, so any long-term investor needs to think like an owner of a small shop, not a moat-protected enterprise. G S Auto has grown sales by 12.09% and profits by 51.02%, and the Piotroski score of 7 is healthy. But I must not confuse a good year with a wonderful business. Return on equity is 9.18% and ROCE is 12.22%; those numbers are moderate, not exceptional. The latest quarter shows ₹40 crore sales but only ₹1 crore net profit, a thin 2.5% margin. That tells me pricing power is weak and the business is exposed to customer and cycle pressures. The balance-sheet details are incomplete—debt/equity is not available—and promoter holding is not disclosed. I would be uncomfortable buying without knowing who runs the shop and how much debt it carries. On valuation, P/E of 22.10 is not cheap for a business earning 9-10% on equity. The P/B of 2.47 means I am paying two-and-a-half times book for an ordinary auto-components supplier. Yes, PEG is 0.70 because profit growth is strong, but auto-component earnings are cyclical; a 51% profit jump often happens from a low base and can reverse when the cycle turns. There is no dividend, so my only return is eventual price appreciation—and Mr. Market is already near the top of the 52-week range. This is a cyclical, not a compounding machine. I would keep it on a watch list and demand a lower price or more evidence of durable margins before putting my money to work.

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