Guj. Toolroom (513337)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I begin with the business. A plastic products toolroom that, in the latest quarter, reports sales of ₹0 Cr and net profit of ₹7 Cr. That combination is impossible to understand as a going concern. In my world, profits come from selling products or services. If there are no sales, where did the ₹7 Cr come from? Likely non-operating income or one-off gains, not a moat you can build on. The 407% profit growth and 0.01 PEG are statistical illusions: a huge percentage on an unreliable base. Graham taught me to weigh book value as a floor. Here the floor is missing: book value is ₹0.53 per share, so paying ₹14.16 means paying 26.7 times tangible book. The P/E of 4.64, on the other hand, would imply roughly ₹71 Cr of trailing earnings — but on a ₹12-13 Cr equity, that would produce ROE close to 575%, not the stated 11.64%. These figures do not tie out; when financial statements cannot be reconciled, I cannot calculate intrinsic value. ROCE of 23.96% and a Piotroski score of 6/9 look pleasant, but they are built on a mysterious earnings stream. Dividend yield is zero, promoter holding is undisclosed, and the stock has run from ₹0.41 to ₹14.16 in a year. This has speculation written all over it. I need visibility, repaying customers, and management skin in the game. None of that is visible. It may be a trader's delight, but it is not a value investor's anchor. I will pass.

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