Swiss Military (523558)
TurnaroundFairStock Score: 23/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹25.73 |
| Market Cap | ₹607 Cr |
| P/E Ratio | 44.67 |
| ROCE | 11.8% |
| ROE | 7.02% |
| Dividend Yield | 0% |
| Profit Growth | -8.15% |
| Debt/Equity | — |
| Sales Growth | 24.83% |
| 52-Week Range | ₹12.75 — ₹26.83 |
| Sector | Consumer Durables |
| Book Value | ₹5.18 |
Strengths
- Sales growth of 24.83% shows healthy demand and top-line momentum.
- Latest quarter revenue of ₹70 Cr provides a larger base to work with.
- ROCE of 11.80% is reasonable at operating level.
- Diversified consumer products reduce reliance on a single segment.
Concerns
- P/E of 44.67 with declining profit offers no margin of safety.
- Profit growth of -8.15% despite 24.83% sales growth indicates margin compression.
- ROE of only 7.02% and zero dividend mean poor shareholder returns.
- Piotroski F-Score of 4/9 and FairStock Score of 27/100 signal weak financial health.
AI Analysis
At ₹25.73, Swiss Military commands a market cap of ₹607 Cr. I don't invest on the name; I invest on numbers. Sales grew 24.83%, and the latest quarter shows revenue of ₹70 Cr, yet net profit was only ₹2 Cr — a margin below 3%. Full-year profit actually fell 8.15%. That tells me this company is spending heavily to grow, but the bottom line is not following. For a value investor, that is a red flag. The quality measurements are weak. Return on equity is 7.02%, which is far below what I'd expect from a durable consumer franchise. A business earning 7% on equity and paying zero dividend is not compounding wealth for me. ROCE is better at 11.80%, but without debt/equity data I cannot judge how much of that is borrowed. Book value is ₹5.18, and I'm being asked to pay ₹25.73 — 4.97 times book. Graham would call that speculation. At a P/E of 44.67, the market expects near-perfect execution. Instead, profit is declining. The Piotroski F-score of 4/9 and FairStock score of 27/100 confirm my caution. PEG of 1.80 is irrelevant when current earnings growth is negative. This may be a turnaround someday: topline growth is real, and diversified consumer products can offer scale. But I need to see margin expansion, higher ROE, and honest capital allocation before paying a premium. For now, Swiss Military stays on my watchlist, not in my portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer