Cybele Industrie (531472)

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

Key Financials

AI Analysis

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

When I look at Cybele Industrie, I see a classic small-cap contradiction. At ₹50.48, the market cap is only ₹56 crore. The P/E is 4.13 and the price-to-book is 1.33, so on the surface Graham's margin of safety appears present. The reported ROE of 40.86% is remarkable, and the latest quarter sales of ₹15 crore with net profit of ₹6 crore suggests strong momentum. Sales growth of 142.74% and profit growth of 404.95% make the PEG ratio of 0.02 look almost too good to be true. In investing, 'too good' often means I have missed something. ROCE is -15.59%. How can a company earn a 40% return on equity while its return on capital employed is deeply negative? One plausible reading is that profits are coming from non-operating or exceptional items, not the core electrical equipment business. If that is true, the low P/E is a trap. I also have no promoter holding data, no dividend yield, and no FairStock score. A tiny ₹56 crore company with a 52-week range of ₹21 to ₹77 is not a stable compounder; it is a speculative vehicle. Benjamin Graham taught me to buy a business as if I owned it forever. Would I want to own this? The growth is dazzling, but quality is unclear. Debt/equity is not available, and negative ROCE undermines the accounting return on equity. There is no evidence of a durable moat in a competitive electrical equipment sector. I cannot trust the numbers enough to call it a wonderful business. If the growth persists and cash flow backs the reported profits, the price is cheap. But value investors must avoid confusing a cyclical bounce with a structural trend. I would need a few more quarters of consistent operating profitability, and clarity on the balance sheet, before I can confidently label this a fast grower rather than a speculative recovery play. Until then, it remains on my watch list, not in my portfolio.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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