Crestchem (526269)

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

Key Financials

Strengths

• Extraordinary capital efficiency: ROE of 34.99% and ROCE of 59.94%
• Strong growth with sales up 49.17% and profits up 38.46%
• Attractive valuation relative to growth: P/E of 12.51 and PEG of 0.29
• Solid Piotroski F-Score of 7/9 indicates healthy fundamentals
• Latest quarter profitable at ₹7 Cr sales and ₹1 Cr net profit

Concerns

• Very small market cap of ₹43 Cr, limiting liquidity and institutional interest
• High P/B of 6.17 against book value of ₹21.93 leaves little asset-level margin of safety
• Promoter holding data not available, creating ownership and governance uncertainty
• Insufficient information for full due diligence; no debt/equity details disclosed

AI Analysis

At first glance, Crestchem looks like the kind of small, unglamorous business I like to study. A ₹43 crore market cap, ₹135 price, and a P/E of 12.51 are not unusual. But the quality metrics are anything but ordinary. Return on equity at 34.99% and ROCE at nearly 59.94% tell me this business compounds capital efficiently. Sales grew 49.17% and profits 38.46%, and with a PEG of 0.29, the market is paying very little for that growth. Even the Piotroski F-Score of 7/9 supports a fundamentally healthy business. When I see a specialty chemical company generating these numbers with no obvious debt burden, I want to dig deeper. Still, I must keep Graham's caution in mind. A price-to-book of 6.17 is not cheap in the asset sense, and with book value of only ₹21.93, much of the price rests on future earnings. The latest quarter's ₹7 crore sales and ₹1 crore net profit are encouraging but small; a single lost contract or raw material shock could hurt. As a micro-cap, this is not a position for size. The absence of promoter holding data and the 'insufficient data' label remind me that I need to know who controls the company and whether they are aligned with minority shareholders. The 1.08% dividend yield is acceptable but not a safety net. In Buffett's terms, this could be a wonderful business if the moat is real; but at this size, I would demand a wide margin of safety and monitor every quarter. It deserves a place on the watchlist, perhaps a small starter position, not a conviction buy without more information.

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