Filtron Engineer (531191)

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

Key Financials

Strengths

• Latest quarter net margin is healthy at about 9% (₹1 Cr net profit on ₹11 Cr sales), showing recent execution.
• Revenue and profit are expanding at extraordinary rates: 10,850% sales growth and 1,000% profit growth, although from a very small base.
• Piotroski F-Score of 6/9 suggests reasonable short-term financial health, not a distressed balance sheet.
• The current price is roughly 93% below the 52-week high, so some speculative froth has been removed and expectations may be lower.

Concerns

• P/E of 749.49 leaves no margin of safety; even annualizing latest quarter ₹1 Cr profit gives roughly 159 times earnings.
• ROE is just 5.55% and ROCE is 0.00%, far below the returns needed to create durable shareholder value; no moat is evident in a Trading & Distributors business.
• Extreme growth rates are from a tiny base and may reverse; latest quarter sales of ₹11 Cr cannot justify a ₹637 Cr market cap on fundamentals.
• No dividend, book value/debt-equity/promoter data are missing, and the stock sits below its 52-week low (₹7.00 vs ₹7.35), indicating high risk and low transparency.

AI Analysis

At first glance, a 10,850% sales growth and a 1,000% profit growth catch the eye. But Graham taught me to look past percentage growth and ask about the size and quality of the base. This is a ₹637 crore market cap company with a latest quarter of only ₹11 crore sales and ₹1 crore profit. Even if I annualize that good quarter, the price is roughly 159 times earnings; the reported P/E is 749.49. A trading and distribution business with no visible pricing power, a 5.55% ROE, and a 0.00% ROCE does not deserve such a multiple. ROCE of zero tells me the business is not producing a satisfactory return on the capital it employs. The 52-week collapse from ₹106.41 to ₹7.00 reminds me that hope, not value, was doing the heavy lifting. I need a margin of safety; here the price has fallen, but earnings do not support the current market cap. A Piotroski score of 6/9 is respectable, but it measures last year, not the durability of the next ten. The apparent PEG ratio of 0.13 is meaningless when earnings are rebounding from a tiny base and may not be sustainable. If the company can compound this latest quarterly profit — ₹1 crore on ₹11 crore sales — for many quarters, perhaps a case can be built. But I cannot build one today with missing book value, no debt/equity data, no promoter holding data, and zero dividend. A trader may see a falling stock as an opportunity; an investor needs evidence of future earning power. I will wait until the price offers a genuine margin of safety.

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