Fluidomat (522017)

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

Key Financials

Strengths

• Strong historical profitability: ROE 23.19% and ROCE 42.24% indicate a high-return business model.
• Current price is 41% below the 52-week high, offering a potential entry point if earnings stabilize.
• Modest dividend yield of 1.31% provides some cash return to shareholders.
• P/E of 17.5 on trailing earnings is not extreme if the profit decline proves temporary.

Concerns

• Sales growth of -13.28% and profit growth of -57.93% show severe recent deterioration.
• Piotroski F-Score of 3/9 indicates weak financial health and poor operational momentum.
• P/B of 4.70 is expensive relative to book value, leaving little asset-based margin of safety.
• Latest quarter annualized profit implies a much higher effective earnings multiple than the trailing P/E suggests.

AI Analysis

At ₹644.75, Fluidomat is not the kind of bargain Graham would endorse, and Buffett would want more evidence before committing capital. The market cap is ₹327 Cr, but the earnings power has clearly slipped: sales fell 13.28% and profits collapsed 57.93%. The latest quarter’s ₹14 Cr sales and ₹2 Cr net profit suggest the trailing P/E of 17.5 overstates the current earning power; annualized, the latest quarter implies an earning yield of only about 2.4%. That is concerning when I am also paying 4.70 times book value for a business whose returns are falling. The historical ROE of 23.19% and ROCE of 42.24% are exceptional and point to a genuine high-return franchise in good times. That tells me there is quality underneath this business. But the Piotroski F-Score of 3/9 warns that financial health is deteriorating, and the profit decline is far steeper than the sales decline, suggesting margin compression. The 52-week range, from ₹550 to ₹1096.45, shows the market has already punished the stock, now sitting near the lower end. The dividend yield of 1.31% offers little support if earnings keep slipping, and I cannot claim the comfort of a debt-free balance sheet because the debt/equity figure is not provided. This is not a Stalwart; it looks like a Cyclical business facing a sharp downturn in demand. Buffett would say it is better to buy wonderful businesses at fair prices, but 17.5 times falling earnings and a 3/9 F-score mean the price is not clearly fair. I would wait for quarterly evidence that sales stabilize and margins begin recovering before stepping in.

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