Mohit Paper Mill (530169)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

This is a classic small-cap cyclical, not a franchise. At ₹45.95, Mohit Paper Mill trades at just 6.16 times earnings and 1.35 times book, with book value at ₹33.99. Return on equity is 13.45% and ROCE is 11.97%, so the business does earn a reasonable return on capital. But I must not confuse a cheap multiple with a cheap business. Sales are down 1.21%, profit growth is only 3.88%, and the PEG ratio of 1.59 tells me the low P/E is nowhere near as attractive as it looks. The latest quarter shows ₹44 Cr sales and ₹3 Cr profit, a respectable margin, but paper is a capital-intensive and cyclical industry. There is no dividend yield, so the small shareholder receives no cash while waiting for the cycle to turn. The Piotroski score of 6/9 is passable, but I have no debt-to-equity data and no promoter holding figures, which is uncomfortable for a ₹65 Cr company. Graham would insist on knowing who controls the business and how much debt it carries. He would also demand a margin of safety. At 1.35 times book and near the 52-week high of ₹45.95, I do not see that margin. For a company with negative sales growth, buying at a premium to book is not obvious value. This looks like a possible cyclical upturn rather than a durable compounder. I would wait for a lower price, evidence of sustained cash generation, or proof of pricing power. Until then, it stays on the watchlist, not in the portfolio.

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