Bansal Roofing (538546)

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

Key Financials

Strengths

• High ROE of 30.73% and ROCE of 22.39% indicate efficient use of capital
• Strong growth: sales up 46.29% and profit up 57.96%
• Low PEG of 0.34 suggests the market is underpricing growth relative to earnings
• Piotroski F-Score of 7/9 points to solid fundamental health
• Latest quarter profitable with net profit ₹4 Cr on sales of ₹39 Cr

Concerns

• Stock price ₹86.09 is below the stated 52-week range of ₹98.10–₹134.90, which needs explanation
• Debt/Equity and promoter holding are not disclosed, limiting transparency
• P/B of 3.76 is rich if growth decelerates
• Small market cap of ₹117 Cr in a competitive, cyclical iron and steel products industry suggests limited moat

AI Analysis

I approach Bansal Roofing the way I approach any business: first, does it earn strong returns on capital, and second, can those returns be sustained? On the first count, the numbers are compelling. The company posts an ROE of 30.73% and ROCE of 22.39%. A Piotroski F-score of 7 out of 9 also hints at a fundamentally sound enterprise. The growth figures are eye-catching: sales up 46.29% and profit up 57.96%. As Graham would remind me, however, a wonderful business can be a bad investment if bought at the wrong price. At ₹86.09, Bansal trades at a P/E of 17.70 and a P/B of 3.76. For a company growing this quickly, the PEG of 0.34 is low, which initially suggests the market is not paying enough for the growth. But I must be careful. The 52-week range is ₹98.10 to ₹134.90, so the stock is actually below that range. That is a red flag or at least a puzzle. I also notice that promoter holding is not available, and the debt/equity ratio is not available. When data is missing, I cannot make a full judgment on financial health. The latest quarter’s sales were ₹39 crore and net profit ₹4 crore, which is respectable, but one quarter is not enough to define a durable trend. The dividend yield of 0.84% is small, so my return depends almost entirely on capital appreciation. Is there a moat? A ₹117 crore enterprise in iron and steel products is likely a small player in a competitive and cyclical industry. That worries me. I would classify Bansal Roofing as a fast grower, but a fast grower without strong pricing power can stumble quickly. I would watch future quarterly trends, debt levels, promoter disclosure, and order flows. If the growth continues and the balance sheet stays clean, this could be interesting. For now, I would keep my position small and my eyes wide open.

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