M K Exim India (538890)

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

Key Financials

Strengths

• ROE of 19.59% and ROCE of 28.36% indicate efficient capital deployment
• Latest quarter net margin of ~19% (₹5 Cr on ₹26 Cr sales) shows strong recent profitability
• P/E of 12.67 is not demanding on trailing earnings
• Sales growth of 9.3% shows modest business expansion

Concerns

• Profit growth declined 16.7% year-on-year despite sales growth
• Zero dividend yield offers no income cushion for investors
• Piotroski F-score of 4/9 suggests weak financial health and earnings quality
• P/B of 3.08 is expensive for a distributor with no clear competitive moat

AI Analysis

At ₹66.89, M K Exim has a market cap of ₹270 Cr, a P/E of 12.67, and a P/B of 3.08. The 9.3% sales growth is acceptable, but I'm disturbed by the 16.7% profit decline. A business that grows sales while shrinking profits is not creating shareholder value. The ROE of 19.59% and ROCE of 28.36% look excellent on paper, but in a distribution business with no obvious moat, these figures can fade quickly as competition intensifies. The latest quarter shows net profit of ₹5 Cr on sales of ₹26 Cr, implying a strong 19% margin, so there may be some resilience. Yet, with zero dividend and falling earnings, I cannot rely on income or steady growth to justify the price. Book value stands at ₹21.74, meaning I'm paying more than three times book for a business with negative profit momentum. The Piotroski F-score of 4 out of 9 reinforces my caution: this is not a company in financial improvement. The PEG ratio of 1.36 is misleading because the profit growth is negative. As Buffett, I seek a wonderful business at a fair price, not a fair business at a wonderful price. This appears to be a fair business at a price offering little margin of safety. I would not buy today. I will watch for a reversal in profitability, clarity on promoter holding, and a price closer to book value before revisiting.

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