Yug Decor (540550)

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

Key Financials

Strengths

• Sales growth of 23.81% shows healthy demand for its specialty chemicals
• Profit growth of 88.33% indicates operating leverage or margin expansion
• Piotroski F-Score of 7 points to improving financial fundamentals
• PEG ratio of 0.77 suggests earnings growth may justify the valuation if sustained
• Trading at its 52-week high of ₹42.30 reflects strong market momentum

Concerns

• P/E of 43.02 is steep for a company with ROCE of only 5.98%
• Latest quarter net profit is near zero despite ₹20 crore sales, raising earnings quality doubts
• Critical data missing—book value, promoter holding, and debt/equity—limiting proper due diligence
• No dividend means shareholders rely entirely on capital appreciation

AI Analysis

At ₹42.30, Yug Decor carries a market cap of just ₹46 crore. That's a microcap in the truest sense. The 23.81% sales growth and 88.33% profit growth are eye-catching, but I've learned that small bases magnify percentages. A 43 P/E with a 5.98% ROCE tells me the return on capital is not yet exemplary. Latest quarter sales of ₹20 crore with near-zero net profit reinforce my caution. This is not a business I can value with confidence. Graham would demand a margin of safety; I see little here. The Piotroski F-score of 7 does suggest improving fundamentals—good signs on operating efficiency and leverage—but a PEG of 0.77 assumes the recent profit growth is sustainable. For a specialty chemicals player, I need proof of pricing power and a durable moat. I don't have enough information: no book value, no promoter holding, no debt/equity ratio. That's a red flag in itself. The share is at its 52-week high, so the market has already noticed. But my job is not to chase momentum; it's to buy a wonderful business at a fair price. Yug Decor may one day become that, but today it's a promising growth story with unproven economics. I'd rather wait on the sidelines, watching how margins and return on capital evolve over the next several quarters.

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