Taneja Aerospace (522229)

FairStock Score: 30/100 — RISKY

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

Key Financials

Strengths

• Sales growth of 15.94% shows end-market demand
• ROCE of 17.45% and ROE of 12.92% show reasonable capital efficiency
• Piotroski F-Score of 7/9 indicates broadly healthy financials
• Latest quarter net margin of ~40% (₹4 Cr net profit on ₹10 Cr sales) suggests pricing power

Concerns

• P/E of 35.63 and P/B of 11.69 leave little margin of safety
• Profit growth of just 0.45% despite 15.94% sales growth shows weak bottom-line conversion
• PEG of 2.95 implies the valuation has run ahead of growth
• FairStock Score of 27/100 and a 52-week move from ₹190 to ₹600.40 point to momentum and risk

AI Analysis

At ₹600.40, Taneja Aerospace carries a market capitalisation of ₹1,531 crore. For that price, the market is asking me to pay 35.63 times trailing earnings and 11.69 times book value, while book value stands at just ₹51.36. Graham would say: am I getting a bargain, or am I paying for hope? The company is not poorly run. Return on equity is 12.92%, ROCE is 17.45%, and the Piotroski score of 7/9 suggests the balance sheet and accounting quality are reasonably sound. But hope is not an investment strategy. Sales grew 15.94%, yet profit growth was only 0.45%. The latest quarter shows sales of ₹10 crore and net profit of ₹4 crore, which is a strong margin, but the base is tiny. A PEG ratio of 2.95 tells me the market has already paid up for growth that isn't showing up in the bottom line. A 1% dividend yield offers almost no income support. The stock has risen from ₹190 to ₹600.40 in its 52-week range, so much of the good news is in the price. At 35.63 times earnings, I need exceptional, durable growth and a wide moat. Instead, the FairStock score of 27/100 is labelled risky, and debt/equity is not provided, leaving me without a full picture of financial risk. This reminds me of a situation where price leads fundamentals. I would not chase it. I would wait for either a lower price, a clearer record of profit growth, or evidence that the aerospace cycle will deliver consistent earnings. Without margin of safety, this is speculation at today's level.

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