Hawa Engineers (539176)

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

Key Financials

Strengths

• Sales growth of 21% shows decent demand momentum.
• ROCE of 14.55% suggests reasonable capital efficiency.
• Piotroski F-Score of 7/9 indicates improving financials and operational health.
• Trailing P/E of 12.32 and PEG of 0.08 look optically cheap if growth persists.
• Latest quarter is profitable with ₹31 crore revenue and ₹1 crore net profit.

Concerns

• Price-to-book of 3.19 is rich relative to ROE of 11.32%, limiting margin of safety.
• Profit growth of 283.33% is likely a low-base effect and not sustainable; latest quarterly net margin is only about 3.2%.
• No dividend yield means downside protection is absent.
• Data gaps on promoter holding and debt/equity, plus a small ₹63 crore market cap, raise risk and liquidity concerns.

AI Analysis

Let me look at Hawa Engineers. A market cap of ₹63 crore makes this a very small industrial company, and right away I know the margin for error is thin. At ₹172.80, the stock trades at 12.32 times earnings and 3.19 times book. Book value is ₹54.12, so the market is asking me to pay more than three times net assets for an ROE of only 11.32% and ROCE of 14.55%. That is not a pairing that makes me want to write a cheque. Sales are growing at 21%, and reported profit growth is a dazzling 283.33%, but I have to be careful with small bases. The latest quarter net profit is just ₹1 crore on ₹31 crore of sales—a margin around 3.2%. That is thin. A low PEG of 0.08 is attractive only if this growth is durable, and I have no evidence yet that it is. On the positive side, the Piotroski F-Score of 7/9 suggests the financial health has improved, and the lack of debt data is a gap I cannot ignore. The absence of a dividend means I must rely entirely on capital gains. The stock sits at its 52-week high of ₹172.80, up from a low of ₹63.40, so a lot of good news may already be priced in. In true Buffett fashion, I want a wonderful business at a fair price. Here I see a small, growing industrial firm, but with a premium price-to-book, modest return on equity, and incomplete disclosures around promoter holding and debt. I would keep it on the watchlist and wait for more data, or a better price, before acting.

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