Star Delta Trans (539255)

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

Key Financials

Strengths

• Sales growth of 61.03% shows strong demand or order momentum in the heavy electrical equipment space.
• Headline P/E of 13.01 is optically cheap compared with the broader market.
• ROCE of 18.77% and ROE of 14.36% indicate decent capital efficiency.
• Book value of ₹272.81 provides some asset backing, though the stock trades well above it.

Concerns

• Profit growth is negative at -5.94%, and the latest quarter shows only ₹2 Cr net profit on ₹53 Cr sales, implying margin compression.
• Piotroski F-Score of 4/9 suggests weak financial health and possible operational red flags.
• Zero dividend yield means no income support while waiting for a turnaround.
• Debt/equity and promoter holding are not disclosed, raising governance and balance-sheet transparency concerns.

AI Analysis

At first glance, this looks like the kind of business I would examine: a heavy electrical equipment maker with a P/E of just 13.01 and ROCE of 18.77%. But I have learned to dig before I dance. Sales grew 61.03%, yet profit fell 5.94%. That is a red flag: revenue is being bought somewhere, perhaps at the cost of margins. The latest quarter confirms my worry—sales of ₹53 Cr generated only ₹2 Cr of net profit, a thin margin. Annualised, that is roughly ₹8 Cr of profit against a ₹275 Cr market cap, meaning the current P/E is optically cheap but could become expensive if this margin persists. The company trades at 3.29 times book value of ₹272.81. That is not a Graham bargain. ROE of 14.36% is acceptable, but the Piotroski F-score of 4 out of 9 signals below-average financial health. With zero dividend yield, I receive no compensation while I wait. The share is at ₹897.30, the top of its 52-week range, so the market is already enthusiastic. I cannot rely on the so-called PEG of 0.21 because it appears to be based on sales growth, not earnings growth; using actual profit decline, that ratio is meaningless. Also, debt/equity and promoter holding are not available—I never buy a business without knowing who controls it and whether the balance sheet is prudent. This may be a cyclical player enjoying an order upcycle, but cyclical businesses often look cheapest at peak earnings. Until margins stabilise and profits start growing alongside sales, I would keep this on the watchlist, not in the portfolio.

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