Samkrg Pistons (520075)

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

Key Financials

Strengths

• Sales growth of 15.06% shows demand is intact despite industry challenges
• P/B of 1.11 with book value of ₹199.41 means the market price is only 11% above assets
• Latest quarter is profitable: ₹2 Cr net profit on ₹66 Cr sales, no loss-making period
• Headline P/E of 16.27 is not extreme, offering some value if earnings stabilize

Concerns

• Profit fell 31.25% even while sales grew 15.06%, indicating severe margin compression
• ROE of 3.70% and ROCE of 7.35% are weak; the business is not earning attractive returns on capital
• Piotroski F-score of 4/9 points to weak financial health and possible deterioration
• Stock at ₹221.30 is at the top of its 52-week range with a tiny dividend yield of 0.42%, leaving little margin of safety

AI Analysis

At first glance, Samkrg Pistons looks like a business I could study, but not one I would rush to buy. It sits in a tough auto-component industry, where pricing power is often limited and profits follow the vehicle cycle. Trailing P/E of 16.27 and P/B of 1.11 look moderate, especially with book value at ₹199.41. But low price multiples are only attractive if the underlying business earns good returns. Here, ROE is just 3.70% and ROCE 7.35%. That tells me this is not a franchise with an economic moat; it is a cyclical operator earning mediocre returns on capital. The numbers also show a disturbing divergence. Sales grew 15.06%, yet profit fell 31.25%. That is classic margin compression. The PEG of 1.08 is meaningless when earnings are falling. In the latest quarter, ₹66 Cr of sales produced only ₹2 Cr of net profit—a roughly 3% margin. Annualize that, and the current price is not as cheap as the headline P/E suggests. The Piotroski F-score of 4 out of 9 reinforces caution; the financial scorecard is weak. A 0.42% dividend yield means I am not being paid to wait. The stock is trading at the top end of its 52-week range, ₹221.30 versus a low of ₹99.95. That is not a margin of safety. Graham would say bargain hunting requires a cushion; here the earnings have fallen, returns are poor, and the market has already re-rated the share. The catalyst would be an auto up-cycle plus sharper cost control, but I cannot rely on hope. For now, this is a cyclical business at an uncompelling price. I will keep it on the watchlist, not in the portfolio.

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