Morganite Crucib (523160)
CyclicalFairStock Score: 15/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹1,454.05 |
| Market Cap | ₹851.13 Cr |
| P/E Ratio | 29.64 |
| ROCE | 30.39% |
| ROE | 16.7% |
| Dividend Yield | 3.74% |
| Profit Growth | -6.75% |
| Debt/Equity | — |
| Sales Growth | 3.2% |
| 52-Week Range | ₹1,155 — ₹1,774 |
| Sector | Industrial Products |
| Book Value | ₹240.85 |
Strengths
- ROCE of 30.39% indicates strong capital efficiency.
- ROE of 16.70% is respectable for equity holders.
- Dividend yield of 3.74% provides a tangible cash return.
- Price is about 26% below the 52-week high, offering some potential value entry.
Concerns
- Sales growth is only 3.20% while profit growth is negative at -6.75%.
- P/E of 29.64 and PEG of 9.26 look expensive given weak growth.
- Piotroski F-Score of 4/9 suggests deteriorating financial fundamentals.
- Latest quarter net profit of ₹6 crore on sales of ₹46 crore signals weak earnings momentum.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer