Choksi Asia (530427)

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

Key Financials

Strengths

• ROE of 33.28% indicates strong return on shareholder equity
• Piotroski F-Score of 7/9 suggests improving financial health
• Sales growth of 41.41% and profit growth of 868.18% show a business expanding sharply, albeit from a small base
• ROCE of 13.20% is reasonable for a micro-cap

Concerns

• Current price ₹65.64 is below the 52-week low of ₹75, signalling a severe market de-rating or data inconsistency
• Profit growth of 868.18% is off a low base, and PEG of 0.04 is likely misleading
• No dividend yield, no debt-to-equity data, and no promoter holding disclosure limit transparency
• Tiny ₹26 crore market cap makes the stock illiquid and difficult to evaluate for retail investors

AI Analysis

At first glance, this looks like a compounding machine. Choksi Asia shows an ROE of 33.28%, sales growth of 41.41%, and profit growth of 868.18%. A Piotroski F-Score of 7 out of 9 also suggests the financial health, not just the earnings headline, has improved. But I always ask: what am I actually buying? This is a ₹26 crore micro-cap in medical equipment, with the latest quarter showing ₹12 crore in sales and ₹2 crore in net profit. That profit number, if annualised, would make the stock look far cheaper than the stated P/E of 17.28. So either the earnings jump is one-time, or the market is already looking ahead to a collapse. The price of ₹65.64 is below the 52-week low of ₹75; the stock has lost tremendous value even while the profit figures appear to explode. That is a warning flag. The PEG ratio of 0.04 is a classic trap from an 868% profit spike off a tiny base. Graham would want a margin of safety. At 2.35 times book, with book value at ₹27.97, I am paying a big premium for a small, illiquid business. There is no dividend yield, debt-to-equity is not available, and promoter holding is not disclosed. In other words, I cannot fully verify how this growth is financed or who controls it. This is a fast grower on paper, but not the kind of business I can confidently hold. I would need to understand whether the ₹2 crore quarterly profit is repeatable, whether it converts into cash, and why the market is rejecting the stock. Until then, it is a pass for the retail investor.

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