Yash Chemex (539939)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹54.42, this is a small chemical trading company with a market cap of just ₹56 crore. Let's look beneath the surface. The reported profit growth of 200% and sales growth of 25.5% look impressive at first glance, but as Graham taught, one must examine the quality of earnings. The latest quarter shows net profit of only ₹1 crore on sales of ₹34 crore—a net margin of roughly 3%. That tells me this is a low-margin intermediary business, likely with little pricing power and no economic moat. ROE of just 5.06% and ROCE of 8.13% confirm that the company is not generating exceptional returns on capital. For a business with a P/E of 27.73, the market is paying a high multiple for earnings that could be volatile. The P/B of 2.29 means you are paying over twice book value, yet book value per share is only ₹23.79. While the Piotroski F-score of 7 suggests recent improvement in financial health, I must also note the zero dividend yield—I receive no cash while waiting. The PEG ratio of 0.25 looks tempting, but that is based on a 200% profit growth that is almost certainly unsustainable from a low base. Trading companies in chemicals face intense competition and cyclicality. I cannot call this a wonderful business. At best, it is a possible fast grower in an industry I generally avoid. I would need a margin of safety, and at 27 times earnings with returns on equity in single digits, I do not see it. The prudent approach is to watch from the sidelines.

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