Sprayking Ltd (540079)
CyclicalScore breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹37.99 |
| Market Cap | ₹401.47 Cr |
| P/E Ratio | 6.07 |
| ROCE | 15.1% |
| ROE | 0.94% |
| Dividend Yield | 0% |
| Profit Growth | -122.16% |
| Debt/Equity | — |
| Sales Growth | 19.43% |
| 52-Week Range | ₹1 — ₹37.99 |
| Sector | Industrial Products |
| Book Value | ₹1.48 |
Strengths
- Sales grew 19.43%, with latest quarter revenue at ₹42 Cr.
- ROCE of 15.10% indicates reasonable operating capital efficiency.
- Headline P/E of 6.07 looks optically cheap if earnings are ever normalised.
Concerns
- Profit growth was -122.16% and latest-quarter net profit was essentially ₹-0 Cr, signalling very weak earnings quality.
- P/B of 25.67 against book value of ₹1.48 means investors pay a huge premium for thin tangible assets.
- ROE of 0.94% is far below acceptable shareholder returns, with zero dividend.
- Piotroski F-Score of 4/9, plus undisclosed promoter holding and debt/equity, make financial health opaque.
AI Analysis
At ₹37.99, my first emotion is distrust, not excitement. A P/E of 6.07 looks cheap on screen, but Graham taught me that earnings must be stable and understandable. Here, profit growth is -122.16% and the latest quarter shows a net profit of ₹-0 Cr — essentially nothing. So the 'E' in that low multiple is not trustworthy. Book value is only ₹1.48, meaning I am paying 25.67 times book for a company that earns an ROE of just 0.94%. That is a terrible trade-off: I am handing over ₹38 for assets that generate less than a rupee of return. ROCE of 15.10% and sales growth of 19.43% (₹42 Cr in the quarter) show that operations have some pulse, but a pulse is not a moat. With zero dividend, no promoter holding disclosure, a Piotroski score of 4/9, and debt/equity unavailable, the financial health is too opaque for a conservative investor. The 52-week range of ₹1.00 to ₹37.99 is the most telling number — the stock has already been re-rated nearly 38 times in one year. That is speculation, not compounding. The PEG of 0.31 is based on a growth figure, not on the falling profit, so it is a misleading green light. If this is a cyclical industrial, a collapsing profit with a high P/B is the classic value trap. I need margin of safety, and at ₹37.99 there is none. I will wait for reliable earnings, cash flow, and a price that compensates me for the risk.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer