Resonance Speci. (524218)

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

Key Financials

Strengths

• P/E of 12.70 and PEG of 0.17 suggest inexpensive valuation relative to recent earnings growth
• Sales growth of 25.88% and profit growth of 124.11% show strong momentum
• Piotroski F-Score of 7/9 indicates solid recent financial health
• ROE of 14.79% and ROCE of 15.40% are respectable for a small-cap

Concerns

• Debt/Equity and promoter holding are N/A, leaving balance sheet and governance unclear
• Profit growth of 124.11% far exceeds sales growth, raising sustainability questions
• Market cap of only ₹117 Cr implies limited institutional coverage and higher risk
• Price is well below the 52-week high of ₹142.90, reflecting possible waning investor confidence

AI Analysis

Resonance Speci. is a small specialty chemicals player with a market cap of just ₹117 Cr. At ₹99.95, it trades at 12.7 times earnings and 1.93 times book, with book value of ₹51.91. That is not an obviously expensive price. The growth figures jump out: sales up 25.88% and profit up 124.11%. A PEG of 0.17 would delight any Graham screen. But as Buffett would say, a great price can hide a bad business if the economics are not durable. ROE at 14.79% and ROCE at 15.40% are respectable, but they are not exceptional. Specialty chemicals can be a decent niche, but I do not see a wide moat from these numbers alone. The Piotroski F-score of 7 tells me recent financial health is above average for a small company. The latest quarter shows ₹23 Cr sales and ₹3 Cr net profit — a roughly 13% margin, which is decent. However, I am troubled by what is not disclosed. Debt/equity is N/A, promoter holding is N/A. In a micro-cap, that is a red flag for governance and financial risk. I cannot calculate a real margin of safety without knowing the balance sheet and who controls the company. Also, 124% profit growth is unlikely to be repeated against 25.88% sales growth; margins expanded sharply, and I don't know if that is sustainable. Mr. Market has marked it down from ₹142.90 to ₹99.95, but that could be rational caution, not opportunity. This could be a fast grower, but only for someone willing to dig into the missing details. I would not buy on these numbers alone. If the growth is real and the balance sheet is conservative, the valuation offers room; but I cannot yet call it a wonderful business at a fair price.

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