Scan Projects (531797)

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

Key Financials

Strengths

• Sales growth of 44.17% and profit growth of 93.33% show strong near-term momentum.
• ROE of 15.42% and ROCE of 13.35% indicate decent returns for a small-cap cement products player.
• Piotroski F-Score of 7/9 suggests reasonable fundamental health, not a distressed balance sheet.
• PEG of 0.43 implies the market may be underpricing the current growth trajectory.

Concerns

• Latest quarter net profit is ₹0 Cr on ₹5 Cr sales, showing margins are extremely thin or volatile.
• P/E of 29.27 and P/B of 4.42 are rich; zero dividend yield means returns depend entirely on price appreciation.
• Stock has fallen from 52-week high ₹136.40 to ₹82.73, a roughly 39% decline, indicating negative price momentum.
• Promoter holding and debt/equity are not disclosed, creating uncertainty for a ₹24 Cr micro-cap.

AI Analysis

Scan Projects is a tiny ₹24 crore market-cap player in cement products. At ₹82.73, the market is paying 29.27 times earnings and 4.42 times book. With book value of ₹18.73 and no dividend, this is not a Graham-style bargain in the conventional sense. But growth numbers are striking: sales are up 44.17% and profit up 93.33%. ROE is 15.42%, ROCE is 13.35%, and the Piotroski F-score of 7 out of 9 suggests decent financial health. The PEG ratio of 0.43 says the market is not fully paying for that growth if it continues. However, I must be careful. The latest quarter shows ₹5 crore of sales and net profit of ₹0 crore. That is a red flag; either this is a seasonal lull, or margins are collapsing in the cement product cycle. Cement is a cyclical, local, commodity-like business. I see no obvious moat, and at this size, even a single order or payment default can hurt. The stock has fallen from ₹136.40 to ₹82.73, so Mr Market has already been disappointed. I also do not have debt/equity ratio or promoter holding data. In a micro-cap, those are vital. Without knowing leverage and insider ownership, I cannot assess whether shareholders are being treated fairly. This is an interesting fast-growing small company, but not a 'wonderful business at a fair price' I can confidently buy. I would demand the annual report, cash-flow details, and proof of margin stability before putting any money to work. So my verdict is: watch, but do not rush.

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