Creative Casting (539527)

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

Key Financials

Strengths

• Revenue grew 73.88% and profit grew 166.10%, showing strong momentum.
• Piotroski F-Score of 7/9 suggests improving fundamentals.
• ROCE of 13.31% and ROE of 11.03% are reasonable for a small industrial.
• Dividend yield of 1.79% offers some minority shareholder return.
• P/E of 16.54 is not excessive if the growth proves durable.

Concerns

• Castings and forgings is competitive; no clear durable moat is visible from the data.
• Debt/Equity and promoter holding are N/A — transparency is insufficient.
• At ₹860.20, near the 52-week high, the margin of safety is thin.
• Latest quarter sales of ₹15 Cr is tiny; high profit growth may be cyclical or base-effect driven.

AI Analysis

Let me simplify. A ₹114 crore castings company at ₹860, near its 52-week high, with sales up 73.88% and profit up 166.10%. That kind of growth catches the eye, but I must ask: is this a wonderful business at a fair price, or a cyclical enjoying a good patch? Castings and forgings is competitive. The numbers tell me the company is executing well: Piotroski F-Score of 7, ROCE of 13.31%, ROE of 11.03%, and a dividend yield of 1.79%. The latest quarter, ₹15 crore sales and ₹2 crore profit, implies a net margin around 13%, which is respectable. At ₹860.20, the P/E is 16.54 and P/B is 2.80. A PEG of 0.14 looks absurdly cheap only if the 166% profit growth is sustainable. I don't assume that. Small caps in cyclical industries often report such spurts, and then growth reverts. The absence of debt/equity and promoter holding data bothers me; Graham would insist on knowing who owns it and how leveraged it is. The company is at the high end of its 52-week range, with no cushion. I would not call it a bargain. It is a fast grower on the surface, but the moat is unclear, and the base is tiny. If sales and profits compound from this level for several years, today's price may look fine; if not, the market will punish the multiple. I need more evidence — especially order visibility, working capital trends, and shareholder communication — before committing capital. For now, I would keep it on a watch list, not in the portfolio.

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