Morganite Crucib (523160)

FairStock Score: 15/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let’s start with what I like. Morganite earns a return on capital employed of 30.39% and a return on equity of 16.70%, which tells me the underlying business has decent economics when conditions are normal. The dividend yield of 3.74% is real compensation to shareholders. But a Graham buyer does not live on yield alone; he demands earnings growth and a margin of safety. Here, sales grew only 3.20% and profits fell 6.75%. The latest quarter shows sales of ₹46 crore and net profit of just ₹6 crore, hardly a momentum that justifies a P/E of 29.64 or a price-to-book of 6.04. Book value is ₹240.85, yet the market is asking ₹1,454.05. That is a great deal of optimism embedded in the price. With a PEG ratio of 9.26 and a Piotroski F-score of only 4/9, the financial health checks are weak. The FairStock score of 15/100 tells me the risk is high. I cannot call this a wonderful compounder; electrodes and refractories are cyclical inputs, and today the growth is anaemic. My rule: buy a good business at a fair price, not a fair business at a rich price. At 29.64 times falling earnings, I see no margin of safety. The high dividend is a small comfort, but dividends can be cut when earnings cycle down. I would need either a sharp price correction, or evidence that sales and profit growth have returned to double digits, before this becomes an attractive investment. Until then, this goes into the 'too hard' pile.

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