Guj. Containers (513507)

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

Key Financials

Strengths

• P/E of 13.14 is not extreme, with trailing annual earnings of roughly ₹7.8 crore
• ROE of 14.16% and ROCE of 18.36% show reasonable capital efficiency
• Book value of ₹79.49 provides an asset floor, and P/B of 2.20 is not outrageous
• Latest quarter remains positive: ₹37 crore sales and ₹2 crore net profit
• Modest dividend yield of 0.96% offers a small income cushion

Concerns

• Profit growth is negative at -8.64%, while sales growth is only 1.34% — a stagnant combination
• Piotroski F-Score of 4/9 points to weak financial health
• PEG of 9.81 implies the valuation is not supported by growth
• Debt/equity and promoter holding are N/A, leaving leverage and governance risks unverified

AI Analysis

At ₹175, Gujarat Containers is a tiny packaging company with a market cap of only ₹102 crore. The first thing I notice is a P/E of 13.14, which sounds moderate, but I must ask: moderate for what? Trailing earnings of roughly ₹7.8 crore are not growing; profit growth is -8.64%. A Graham buyer demands a margin of safety. Paying 2.20 times book value of ₹79.49 is not such a margin. Return on equity of 14.16% and ROCE of 18.36% tell me the business does earn a decent return on capital, but with sales growth of just 1.34%, this is not a compounding machine. The latest quarter shows sales of ₹37 crore and net profit of ₹2 crore, so it is profitable, but the trend is sideways to down. The Piotroski F-Score of 4 out of 9 reinforces my caution: the financial health score is weak. A PEG of 9.81 is a loud warning that the price already reflects far more growth than this business is delivering. The dividend yield of 0.96% gives me almost no income protection while I wait. I also cannot judge leverage because debt/equity is not given, and promoter holding is not disclosed. In a small packaging business, those unknowns matter. This is a slow grower at best, and at ₹175 it is fairly to fully priced. Buffett said it is far better to buy a wonderful company at a fair price, but I cannot call it wonderful without a moat, and the numbers show stagnation. I would wait for a cheaper price or clear evidence that profit has resumed growing before acting.

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