Krypton Industri (523550)

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

Key Financials

Strengths

• Revenue growth of 15.50% and reported profit growth of 554.55% show clear recent momentum.
• Latest quarter net profit of ₹1 Cr on ₹13 Cr sales points to improving profitability.
• Piotroski F-Score of 7/9 suggests improving fundamentals and decent financial health.
• Dividend yield of 2.72% offers some shareholder return while the recovery develops.
• PEG of 0.18 indicates potential cheapness if the current earnings trajectory is sustained.

Concerns

• Trailing P/E of 52.52 and P/B of 2.41 leave little margin of safety if the turnaround stalls.
• ROE of 6.54% and ROCE of 8.36% are weak, suggesting poor capital efficiency and limited moat.
• Promoter holding and debt/equity data are N/A, creating transparency and governance uncertainty.
• Profit growth of 554.55% is from a low base and can reverse just as quickly.

AI Analysis

At ₹51.21, Krypton Industri is a small, diversified business with a market cap of only ₹75 Cr. The first thing I notice is the gap between price and underlying profitability. Trailing earnings imply a P/E of 52.52, which is rich for any company, let alone one with an ROE of just 6.54% and ROCE of 8.36%. As Graham would ask: are we paying a high price for mediocre returns on capital? The P/B of 2.41 reinforces that concern. However, the latest quarter shows ₹1 Cr net profit on ₹13 Cr sales, and reported profit growth of 554.55% cannot be ignored. This looks less like a moat-based compounder and more like a turnaround where a low base distorts the growth rate. Sales grew 15.50%, which is respectable, and a Piotroski F-Score of 7/9 suggests improving fundamentals. The dividend yield of 2.72% provides a modest cushion, and the PEG of 0.18 hints that the market may be underpricing earnings if this recovery persists. But I will not let one quarter seduce me. A single ₹1 Cr profit quarter would, if annualized, make the valuation far more reasonable, yet I still need proof of durability. The absence of promoter holding and debt/equity data makes me uncomfortable. I want predictable earning power, strong returns on capital, and honest disclosure. Krypton may yet become a good business, but at this price I would demand a clear margin of safety before acting.

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