Salguti Industri (526554)

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

Key Financials

Strengths

• Sales growth of 22.33% shows a healthy top-line expansion.
• Profit growth of 114% and PEG of 0.87 suggest the market's valuation may be reasonable if earnings growth is sustainable.
• Piotroski F-Score of 7/9 reflects improving fundamental health in recent periods.
• The company is trading at its 52-week high of ₹37.40, indicating strong recent market momentum.

Concerns

• Latest quarter had ₹30 Cr in sales but net profit of ₹0 Cr, meaning current operations are barely profitable.
• ROE of 7.22% and ROCE of 7.15% are too low to justify a P/B of 3.01.
• P/E of 59.14 with zero dividend yield leaves no earnings cushion or income support.
• Promoter holding and debt/equity are N/A, making ownership and leverage risks impossible to evaluate.

AI Analysis

Let me start with what I know. Salguti Industri is a small packaging company with a market cap of only ₹30 crore, trading at ₹37.40, the top of its 52-week range. That immediately puts me on guard: the P/E is 59.14 and the price-to-book is 3.01 against a book value of ₹12.42. A 114% profit growth number and a PEG of 0.87 look exciting, but I have learned to be suspicious of one-year wonders. The latest quarter reports ₹30 crore of sales and essentially zero net profit. If current operations are not earning money, the annual profit growth may be a low-base effect or a one-off gain. The business earns only a 7.22% ROE and 7.15% ROCE. At three times book, I need a far better return on capital. There is no dividend, so the investor is entirely dependent on Mr Market repricing the shares. The Piotroski F-score of 7 does indicate some recent improvement, but that score looks backward. I also have no data on promoter holding, debt-to-equity, or cash flow. In packaging, without knowing customer concentration, debt, or ownership, I cannot assess a moat. A ₹30 crore company trading at its all-time high with near-zero quarterly profit offers no margin of safety. This could become a good business someday, but the numbers today do not justify the price. I would keep watching and wait for evidence over several quarters, not years of one strong headline.

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