Cranex (522001)

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

Key Financials

Strengths

• ROE of 18.32% shows decent capital efficiency for a micro-cap
• Piotroski F-Score of 7/9 suggests reasonable financial health
• Positive ROCE of 10.22% indicates the business generates some return on capital
• Profit growth of 255.56% reflects near-term earnings recovery potential

Concerns

• Sales growth of only 1.74% and latest quarter net profit of ₹0 Cr point to stagnant or lumpy demand
• Valuation is rich at P/E of 21.70 and P/B of 4.35 against book value of ₹20.22
• Zero dividend yield offers no income support
• Promoter holding and debt/equity are unavailable, reducing transparency for a micro-cap

AI Analysis

At ₹87.95, Cranex is a ₹55 crore micro-cap in the industrial products space. The first thing I notice is a disconnect between the top line and the bottom line. Sales grew only 1.74 per cent, yet reported profit jumped 255.56 per cent. In my experience, that kind of divergence is usually a low-base artifact, not a sign of durable franchise strength. The latest quarter confirms the fragility: sales of ₹11 crore and net profit of ₹0 crore. Earnings are lumpy, and with a zero-profit quarter, I cannot treat accounting earnings as dependable. I look for businesses with strong returns on capital and a clear moat. Cranex has ROE of 18.32 per cent, which is respectable, but ROCE is only 10.22 per cent. That tells me the company does not earn a wide spread over its capital costs. Book value is ₹20.22; at ₹87.95 I am paying 4.35 times book. Graham would demand a margin of safety, and this price offers little. The P/E of 21.70 and zero dividend yield only add to the valuation concern. The financial health appears reasonable on the Piotroski scale, with a score of 7 out of 9. However, debt/equity is not given, and promoter holding is also not disclosed. For a micro-cap, missing ownership information is a red flag; I cannot judge whether insiders are aligned with minority shareholders. The PEG ratio of 0.11 looks tempting only if 255 per cent profit growth is sustainable. But sales growth of 1.74 per cent and a nil quarterly profit say otherwise. This is a small, cyclical industrial player, not a predictable compounder. I would keep it on a watchlist and wait for a much lower price, consistent growth, and better disclosure before considering it. The current risk-reward does not favour the value investor.

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