Bemco Hydraulics (522650)

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

Key Financials

Strengths

• ROCE of 23.73% indicates efficient use of invested capital
• Sales growth of 16.07% and profit growth of 20.91% show healthy momentum
• Piotroski F-Score of 7/9 suggests solid recent fundamentals
• Latest quarter reflects consistent operating traction with ₹4 Cr net profit on ₹25 Cr sales

Concerns

• P/B of 98.92 and P/E of 24.59 leave virtually no margin of safety
• Dividend yield of 0.12% offers negligible income support
• 52-week range from ₹59.99 to ₹1,397.75 indicates extreme speculative price movement
• Missing debt/equity and promoter holding data limits confidence in financial health and governance

AI Analysis

When I look at Bemco Hydraulics, the first thing that stops me is valuation. At ₹1,397.75, the market capitalisation is ₹314 Cr on book value of ₹14.13 per share — a price-to-book of 98.92 times. Graham would say there is no margin of safety here. The company earns ROE of 16.79% and ROCE of 23.73%, which are respectable. Sales grew 16.07% and profit grew 20.91%, and the latest quarter shows ₹25 Cr sales and ₹4 Cr net profit, suggesting momentum. Still, at roughly ₹16 Cr annualised profit, the P/E of 24.59 is not cheap. A PEG ratio of 1.33 means you are paying a premium for growth that must continue reliably for years. The Piotroski F-score of 7/9 is reassuring on recent fundamentals, but the 52-week range from ₹59.99 to ₹1,397.75 screams speculative mania, not sober compounding. A dividend yield of 0.12% offers almost nothing to patient shareholders. I also cannot judge financial health properly because debt/equity and promoter holding data are not available. That lack of transparency matters, especially after such a sharp price run. This looks like a fast-growing small-cap that Mr. Market has discovered with enthusiasm. As Buffett says, price is what you pay; value is what you get. At this price, you are paying for near-perfect execution far into the future. I would wait for a far better price, or for earnings to catch up with the valuation. Let the business prove its durability and let the market cool off. Then a value investor can talk.

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