Narmada Gelatine (526739)

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

Key Financials

Strengths

• ROE of 21.88% and ROCE of 19.92% show strong capital efficiency
• Sales growth of 18.14% and profit growth of 72.90% indicate fast, credible expansion
• P/E of 8.87 and PEG of 0.19 suggest the market is underpricing growth
• Piotroski F-Score of 7/9 points to sound fundamentals
• Dividend yield of 2.82% provides income while waiting

Concerns

• Debt/Equity and promoter holding data are N/A, leaving key governance and leverage questions unanswered
• P/B of 2.12 means the stock is not a classic Graham net-net; investors pay a premium to book value
• 52-week range of ₹327.30-₹460.00 reflects meaningful price volatility for a small-cap
• Latest quarter profit may not be linear if specialty chemical demand or input costs shift

AI Analysis

Looking at Narmada Gelatine, I first ask: what does the business earn on capital? The answer is pleasing. ROE of 21.88% and ROCE of 19.92% tell me this specialty chemical company puts shareholder money to work efficiently. At ₹388.85, the market caps the company at ₹241 Cr, which is only 8.87 times trailing earnings. For a business growing sales at 18.14% and profits at 72.90%, that price is not demanding. The latest quarter — ₹57 Cr sales and ₹7 Cr net profit — suggests momentum is intact. A Piotroski F-Score of 7 out of 9 adds further confidence in the financial health. Benjamin Graham would like the margin of safety: the earnings yield is over 11%, and the 2.82% dividend yield gives me a small reward while waiting. That said, I must not mistake a good price for a sure thing. The 52-week range of ₹327.30 to ₹460.00 shows this is not a quiet stock; it can swing. Debt/equity is not provided, and promoter holding is also marked N/A, so I am flying partially blind. A P/B of 2.12 means I am paying a premium to book value, so I must rely on the company maintaining its high returns. Still, with a PEG of 0.19, the market seems to be ignoring Narmada's growth. My style is to buy wonderful businesses at fair prices; here I may be getting a decent business at a very reasonable price. I would not bet the farm on one quarter, but I would keep this on my watch list and study the full annual report before acting.

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