Chordia Food (519475)

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

Key Financials

Strengths

• Sales growth of 91.55% and profit growth of 45.45% show strong momentum
• PEG ratio of 0.68 suggests the stock may be cheap relative to its growth rate
• Piotroski F-Score of 7/9 indicates improving fundamentals on several financial metrics
• Small market cap of ₹35 Cr leaves room for expansion if the company executes well

Concerns

• ROE of 4.30% and ROCE of 5.15% are far below acceptable levels for a quality compounder
• Latest quarter sales of ₹1 Cr and net profit of ₹0 Cr highlight a negligible economic base
• P/E of 46.43 with zero dividend yield gives no margin of safety
• Promoter holding is undisclosed, raising governance and alignment questions

AI Analysis

This is a tiny company, ₹35 crore market cap, trading near its 52-week high at ₹88.10. The headline numbers look exciting: sales grew 91.55% and profits 45.45%, with a PEG of 0.68. But let me slow down. The latest quarter shows sales of just ₹1 crore and net profit of ₹0 crore. That's not a business; it's a rounding error. When I see ROE of 4.30% and ROCE of 5.15%, I recognize a business that earns far less than a fixed deposit. If I cannot earn a decent return on equity, all growth is just a promise to consume more capital. The P/E of 46.43 and P/B of 2.40 are not bargain prices. Even with high growth, the absolute scale is so small that any hiccup could erase the entire story. The Piotroski score of 7 out of 9 is a positive sign about financial health, but I cannot ignore zero dividend yield and no promoter holding disclosures. As Graham would say, price is what you pay, value is what you get. Here I see a business with weak economics, no clear moat, and a price that already embeds optimism. In India, packaged foods can be a great compounding arena, but this company needs to prove it can earn meaningful profits at scale. I would rather watch from the sidelines than pay 46 times earnings for ₹1 crore of quarterly sales. If the growth continues and returns improve, we can revisit. But today, this is a speculation, not an investment.

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