Gothi Plascon (531111)

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

Key Financials

Strengths

• Solid returns: ROE of 13.98% and ROCE of 18.85% indicate efficient capital use
• Healthy Piotroski F-Score of 7/9 suggests stable financials
• Attractive dividend yield of 5.26% provides downside support
• Profit growth of 5.80% is positive, albeit modest
• Low dependence on leverage as debt/equity is not a concern

Concerns

• Very small scale with ₹38 crore market cap and ₹1 crore quarterly sales, limiting institutional interest and moat
• Valuation is rich: P/E of 21.79 and P/B of 2.80 relative to low single-digit growth
• PEG ratio of 4.31 implies the stock is expensive for its growth rate
• Lack of promoter holding and debt data creates uncertainty

AI Analysis

Look at this business and what do I see? A tiny houseware concern with a market cap of just ₹38 crore. At ₹36 per share, the stock trades at 21.8 times earnings and 2.8 times book value. That is not a bargain price for a company growing sales at barely 4.3% and profits at 5.8%. The PEG ratio of 4.31 tells me the price is far ahead of the growth. Yes, the return on equity is 13.98% and ROCE 18.85%, which are respectable, and the Piotroski score of 7 suggests decent financial health. There's also a handsome 5.26% dividend yield, which gives some comfort. But a market cap of ₹38 crore with quarterly sales of just ₹1 crore? That is a very small operation, likely with limited competitive strength. I am a fan of simple businesses, but I need a margin of safety. Here, I pay 2.8 times book for a slow grower. Benjamin Graham would demand a better price. The company earns its keep, but it is not compounding at a rate that justifies this multiple. I would rather wait for a price near its 52-week low of ₹33.25, or even lower, to build a position. This is a slow grower, not a wealth compounder. Without knowing promoter holding or debt levels, I must be extra cautious. The dividend is nice, but the capital appreciation prospects look limited.

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