Baroda Extrusion (513502)

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

Key Financials

Strengths

• ROCE of 23.98% is strong, if sustainable, and suggests capital employed is earning a decent return.
• Latest quarter shows a net profit of ₹2 Cr on sales of ₹44 Cr, indicating current profitability.
• Profit growth of 140.91% signals a sharp improvement in earnings from a weak base.
• Piotroski F-Score of 6/9 suggests moderate fundamental improvement.
• PEG of 0.21 indicates apparent cheapness relative to recent earnings growth, assuming the growth persists.

Concerns

• Negative ROE of -58.37% points to a weak or negative net worth; book value and debt/equity are undisclosed, leaving balance-sheet risk unclear.
• Sales growth is flat at -0.36%, so there is no topline expansion.
• P/E of 29.69 is expensive for a commodity business with flat sales, and the price is already below the 52-week low.
• Zero dividend and undisclosed promoter holding reduce confidence for minority investors.

AI Analysis

At first glance, the 140.91% profit growth and ROCE of 23.98% make Baroda Extrusion look like a hidden gem. But I've learned to read the entire annual report, not just the headline. The ROE is -58.37%, which tells me the equity base is either deeply eroded or negative. Without a disclosed book value and debt/equity, I cannot, as Graham would say, obtain a margin of safety. The price of ₹6.24 is below the 52-week low of ₹6.72, so Mr Market is not rewarding this stock; it is marking it down. Sales growth is -0.36%, flat. This is not a growing franchise; it's a commodity aluminium extrusion business with no pricing power and likely no durable moat. The latest quarter shows ₹44 Cr sales and ₹2 Cr net profit. That is a 4.5% net margin—adequate, but not spectacular. The P/E of 29.69 means I am being asked to pay nearly 30 times trailing earnings for a low-growth commodity business. The PEG of 0.21 is seductive, but PEG ratios are only useful when growth is predictable; here, the growth is coming from a low and perhaps cyclical base. The Piotroski F-Score of 6/9 is decent and suggests some improving financials, but it is not enough. There is no dividend, promoter holding is undisclosed, and the stock is falling. This looks like a speculative turnaround, not a Buffett-style investment. I need a strong balance sheet, consistent earning power, and a clear moat. Baroda Extrusion has none of those. I would pass. If I were already a shareholder, I would reconsider my thesis and not confuse a quarterly profit with a permanent improvement.

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