Duropack (526355)

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

Key Financials

Strengths

• Sales growth of 20.97% shows decent demand traction.
• ROCE of 10.26% is above ROE, indicating some operating-level efficiency.
• Book value of ₹38.97 provides a measurable asset base.
• Trading below the 52-week high of ₹87.50, leaving some room if earnings recover.

Concerns

• Profit growth is -19.30%, and the latest quarter net profit is essentially ₹0 Cr despite ₹10 Cr sales.
• P/E of 19.19 is expensive when earnings are falling and quarterly profits are nil.
• Piotroski F-Score of 4/9 suggests weak financial health.
• No dividend and promoter holding data not disclosed; valuation lacks a shareholder-return cushion.

AI Analysis

At ₹74, Duropack is a ₹39 Crore microcap in industrial plastic products. The first thing I look for is a durable competitive advantage, and I don't see one. A 7.63% ROE with a 1.90 price-to-book means the business is earning just enough to keep its head above water, not compounding shareholder wealth. ROCE of 10.26% is decent but not a toll bridge. Recent numbers are more troubling: sales up 20.97%, yet profits down 19.30%, and the latest quarter shows ₹10 Cr sales with essentially zero net profit. That tells me the company is selling more but keeping very little; pricing power, cost control, or both are missing. At 19.19 times earnings with earnings falling, there is no margin of safety. The P/E may look moderate, but with profit growth negative and quarterly profits at nil, the 'E' is unreliable. The Piotroski score of 4/9 also signals weak financial health. There is no dividend, so a patient owner receives no income while waiting. Book value is ₹38.97, and the stock trades at nearly 1.9 times that—not an asset play. Sales growth is the only real positive, but growth without profit is merely effort, not wealth creation. If this is a cyclical business, the low/zero profit now could be the trough, but I don't need to predict cycles; I need a clear margin of safety. I'd rather watch from the sidelines. A 20% sales grower that cannot convert to profit, with poor scorecards and no promoter holding data, fails my test of a wonderful business. Keep it on the watchlist, not the portfolio.

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