Gujarat Poly (517288)

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

Key Financials

Strengths

• Apparent P/E of 1.76 with market cap of ₹86 Cr suggests reported earnings are high relative to price.
• Latest quarter net profit of ₹25 Cr dwarfs the market cap and could imply a large cash buffer if it is real and repeatable.
• Piotroski F-Score of 6/9 indicates broadly acceptable financial-health signals.
• ROCE of 12.50% is positive, showing some underlying return on capital despite the distorted ROE.

Concerns

• Quarterly sales of only ₹4 Cr cannot legitimately produce ₹25 Cr of ordinary net profit, indicating likely one-time or extraordinary income.
• Sales growth of -14.73% shows the core business is shrinking, not growing.
• P/B of 7.72 against book value of ₹12.43 means paying a huge premium for very thin tangible assets.
• No dividend yield, no promoter-holding data, and unavailable debt/equity make ownership risk difficult to assess.

AI Analysis

When I look at Gujarat Poly, the first number that catches my eye is the P/E of 1.76. That looks absurdly cheap, but Ben Graham taught me never to judge a stock by a single ratio. The market cap is only ₹86 Cr, and the latest quarter shows sales of just ₹4 Cr against a net profit of ₹25 Cr. No ordinary electrical equipment company turns ₹4 Cr of revenue into ₹25 Cr of operating profit. This smells like an extraordinary gain, a one-time sale, or a non-operating item. The 1000% profit growth and PEG of 0.00 are therefore mathematical illusions, not signals of sustainable earning power. Book value is ₹12.43, yet the price is ₹95.95, so I am paying 7.72 times tangible book for a business whose sales fell 14.73%. The 276% ROE is flattering because the equity base is tiny; the 12.50% ROCE is far more sober and tells me the real return on capital is modest. The Piotroski score of 6/9 is moderately healthy, but it cannot tell me whether the recorded profit is cash-backed or repeatable. There is no dividend, so my return depends entirely on the market, not on cash the business sends me. I would rather pass on a mystery where the biggest profit item has no relationship to quarterly revenue. If I could verify that the ₹25 Cr is recurring and backed by cash, I would look again. Until then, this is a cheap-looking story with a very expensive risk.

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