Jumbo Bag (516078)

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

Key Financials

Strengths

• P/E of 7.06 and P/B of 1.03 offer a margin of safety versus book value of ₹40.61.
• ROE of 25.04% indicates efficient use of equity capital.
• Profit growth of 69.23% and PEG of 0.10 point to underappreciated earnings momentum.
• Latest quarter is profitable: ₹2 Cr net profit on ₹29 Cr sales.
• Piotroski F-Score of 6/9 suggests reasonable financial health.

Concerns

• Sales declined 14.04%, so growth is not coming from the top line.
• No dividend is paid, so returns depend entirely on capital appreciation.
• ROCE of 10.68% is modest, and debt/equity is not disclosed.
• Current price is below the stated 52-week range, indicating possible distress or inconsistent data.

AI Analysis

At ₹41.75, Jumbo Bag trades at only 7.06 times earnings and 1.03 times book value, with book value at ₹40.61. That gives me a Graham-style margin of safety, but I must ask whether the business deserves it. Packaging is a competitive, low-moat industry, and the top line has fallen 14.04%. That bothers me. Yet the bottom line tells a different story: profits grew 69.23%, ROE is a strong 25.04%, and the PEG ratio of 0.10 suggests the market is not paying for the recent earnings momentum. The latest quarter shows ₹2 Cr net profit on ₹29 Cr sales, so margins are holding up even as revenue shrinks. The Piotroski F-Score of 6/9 is acceptable, not great. However, I cannot fully assess financial risk because the debt-to-equity ratio is not disclosed. There is no dividend, so the patient shareholder must be rewarded entirely through price appreciation. ROCE of 10.68% tempers my enthusiasm; this is not a wonderful business compounding at high returns. The share price is also below the stated 52-week range of ₹49.06 to ₹105.00, which could signal distress or simply bad data. All in all, this looks like a turnaround situation rather than a durable compounder. The valuation is cheap only if management can stabilise sales and protect margins. If the revenue decline continues, today's low multiple could become a value trap. I would wait for evidence of top-line recovery before committing significant capital.

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