Multibase India (526169)

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

Key Financials

Strengths

• Strong ROCE of 18.56% suggests efficient capital deployment.
• PEG of 0.54 and 37.82% profit growth offer apparent value if growth is sustainable.
• A 25% dividend yield signals a very shareholder-friendly payout posture.
• Piotroski F-score of 6/9 indicates moderately sound financials.

Concerns

• Sales fell 21.11%, so profit growth may not be durable if top-line erosion continues.
• ROE of only 9% is mediocre, while paying 1.94 times book leaves little margin of safety.
• The 25% dividend yield may be unsustainable if profits are partly non-operating or one-off.
• Small absolute scale—latest quarter sales ₹14 Cr and net profit ₹3 Cr—makes earnings vulnerable to shocks.

AI Analysis

At ₹243.65, Multibase India gets a ₹314 crore market cap. The market is paying 20.27 times earnings and 1.94 times book for a specialty chemicals company whose sales fell 21.11%. That immediately fails my first test: I would rather pay a fair price for a growing business than a full price for one shrinking. Profit growth of 37.82% is eye-catching, and the PEG of 0.54 would be interesting if that growth were caused by enduring demand. But a 37.82% profit rise against a 21% sales decline makes me wonder whether this is real operational improvement or a scraped margin, non-operating income, or cost cutting. Graham taught me to demand a margin of safety. At 1.94 times book, with ROE of only 9%, I don't see it. ROCE of 18.56% shows some capital efficiency, but the return on equity is ordinary. The 25% dividend yield is remarkable—almost unbelievable. If a business can pay that and retain enough, it is a cash machine; if it is paying out more than it earns, that dividend will not hold. Latest quarter sales of ₹14 Cr and net profit ₹3 Cr remind me of the small scale here; one contract or product hit can move the needle. Piotroski score of 6/9 is not terrible, but it is not a clean bill of health. I would wait for evidence that revenue has stabilised before trusting the profit number. Until then, this feels like a possible turnaround, not a predictable compounder. Indian retail investors should remember: no beautiful spreadsheet can replace a fortress-like business and honest, dividend-paying history. The price is close to the top of its 52-week range; I prefer to be greedy when others are fearful, not hopeful after a sharp run.

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