Mewar Hi-Tech (540150)

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

Key Financials

Strengths

• Attractive headline valuation: P/E of 7.72 on a ₹20 Cr market cap
• Respectable capital efficiency: ROCE of 18.54%
• Sharp profit growth of 158.14% gives a low PEG of 0.05, signaling recent earnings momentum
• Piotroski F-Score of 6/9 suggests moderately healthy fundamentals, not a distressed balance sheet

Concerns

• Sales growth is negative at -16.15%, showing the business is shrinking
• Latest quarter net profit is zero on ₹16 Cr sales, so current earnings power is weak
• Zero dividend yield means no income support for shareholders
• Critical data missing: book value, ROE, debt/equity, promoter holding; FairStock Score is INSUFFICIENT_DATA

AI Analysis

At ₹50, Mewar Hi-Tech carries a market cap of only ₹20 crore and a P/E of 7.72. That looks like a Graham-style bargain at first glance, but a low multiple is never enough. This is a civil-construction company, and construction is a cyclical, low-moat business where earnings are volatile. Sales are down 16.15%, and the latest quarter had net profit of zero on ₹16 crore of sales. The 158.14% profit growth is dramatic, making the PEG ratio 0.05, but I treat that as an arithmetic illusion when the current quarter earns nothing. ROCE of 18.54% is the one solid number in favour of the company; it suggests capital is not being wasted. The Piotroski F-Score of 6 out of 9 says financial health is moderate, neither excellent nor alarming. For an Indian retail investor, a ₹20-crore market cap is microcap territory, with liquidity and governance risks. Dividend yield is zero, so any return must come purely from price appreciation. What worries me most is what I cannot see. Book value, ROE, debt-to-equity, and promoter holding are all unavailable. FairStock Score explicitly says INSUFFICIENT_DATA. Without a balance sheet, I cannot calculate margin of safety. Ben Graham would insist on quantitative evidence, not just a cheap P/E. Is this a turnaround or a value trap? The sales decline and zero quarterly profit say caution; the high ROCE and positive profit momentum say watch. If I owned it, I would monitor quarterly sales and profit closely. If I did not own it, I would wait until the company proves it can grow sales again and earn a real profit. A wonderful price cannot rescue a business with uncertain numbers. In this market, patience is the smartest trade. I need more facts before writing a cheque.

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