Binayaka Tex Pr (523054)

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

Key Financials

Strengths

• Sales growth of 39.82% shows real demand and business expansion.
• Piotroski F-Score of 7/9 points to improving overall fundamentals.
• Book value of ₹1,322.47 per share offers relative asset cushion, with P/B at 1.29.
• Reported PEG of 0.06 suggests the market is pricing in strong forward earnings growth, though this needs verification.

Concerns

• Reported ROE of 197.76% contradicts the P/E and P/B; the implied ROE is closer to 4%, so the headline figure is unreliable.
• ROCE of only 7.02% and latest net margin of ~2.8% (₹2 Cr net profit on ₹72 Cr sales) indicate weak returns on capital.
• Stock price of ₹1,702 is below the 52-week range of ₹1,853–₹2,837, and zero dividend provides no income support.
• Missing promoter holding and debt/equity data reduces transparency.

AI Analysis

Let me begin with what looks exciting: sales have risen nearly 40% and reported profit growth is 1,000%, giving a PEG of 0.06. Graham would tell me to be suspicious of numbers that are too good. A 1,000% profit jump usually means the base was tiny. The latest quarter confirms this: ₹72 crore of sales produced only ₹2 crore of net profit — a margin of around 2.8%. That is a very thin business. More troubling is the balance sheet math. A P/E of 30.65 with a P/B of 1.29 implies an ROE of roughly 4%, not the 197.76% shown. The reported ROE and these valuation ratios cannot all be correct. When data conflicts, I trust the cautious interpretation. ROCE of 7.02% reinforces that this enterprise does not earn an impressive return on capital. The stock is at ₹1,702, below its 52-week range of ₹1,853–₹2,837, and pays no dividend. There is no promoter-holding data and no debt-to-equity figure, so transparency is weak. I cannot call this a wonderful business at 30.65 times earnings. Still, there are some Graham-like positives. Book value is ₹1,322.47 per share, so the price is only 1.29 times book. The Piotroski F-score of 7/9 suggests improving fundamentals. Sales growth of 39.82% is genuine evidence of demand. If the company can convert that demand into real profit margins, the future could be better than the past. But I do not speculate on hope. I want a margin of safety, and at this price and with these margins, I do not see it. I would wait, let more quarters of earnings appear, and only consider buying if margins, ROCE, and cash generation improve while the price stays cheap.

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