Captain Pipes (538817)

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

Key Financials

Strengths

• P/E of 14.62 and PEG of 0.20 are optically cheap if the 72.48% profit growth can be sustained.
• Latest quarter posted ₹2 Cr net profit on ₹20 Cr sales, roughly a 10% net margin, showing current profitability.
• Price is at a 52-week high of ₹18.20, implying the market is rewarding the recovery.
• Piotroski F-Score of 5/9 points to some fundamental improvements, even if not a clean bill of health.

Concerns

• Reported ROE of 10.58% combined with P/B of 9.63 implies a far higher P/E than the stated 14.62; the data is internally inconsistent and not trustworthy.
• Sales growth is negative (-2.61%), so the 72.48% profit growth likely comes from cost cuts or base effect, not demand.
• ROCE is 0.00%, debt/equity is N/A, promoter holding is N/A; key balance-sheet and ownership risks cannot be assessed.
• No dividend (0.00%) and a mediocre Piotroski F-Score of 5/9 leave no margin of safety for a retail investor.

AI Analysis

Let me start with what I can calculate. Captain Pipes trades at ₹18.20, a ₹270 Cr market cap. That is at the very top of its ₹7.05–₹18.20 range. A P/E of 14.62 is not expensive on the surface, but the rest of the numbers trouble me. The reported ROE is only 10.58%, while I would be paying 9.63 times book value of ₹1.89. Those two figures together imply a P/E of about 91, not 14.62, unless ROE has suddenly jumped. This internal inconsistency makes me distrust the data. Sales are falling—negative 2.61%—so the 72.48% profit growth is not coming from a growing business. The latest quarter does show ₹2 Cr profit on ₹20 Cr sales, a 10% net margin, but one quarter does not establish a durable moat. ROCE is reported as 0.00%, debt/equity is N/A, and promoter holding is N/A. I cannot judge financial leverage or aligned ownership. The Piotroski score of 5/9 is mediocre, not the 8 or 9 I look for. There is no dividend, so all my return depends on capital gains and reinvestment. The PEG of 0.20 is seductive, but it assumes that 72% profit growth can keep compounding. With sales shrinking, that is an unsafe assumption. I would rather own a business with growing revenue and reasonable margins than a company whose profits are moving while sales are flat. This looks like a turnaround story that the market has already noticed, not a Graham-style bargain. At ₹18.20, the margin of safety is thin. I need to see positive sales growth, a credible ROE, and a consistent story between book value and earnings before I would commit capital.

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