Gautam Exim (540613)

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

Key Financials

Strengths

• Latest quarter still shows ₹18 Cr of sales, indicating some ongoing business activity.
• At ₹22 Cr market cap and roughly ₹72 Cr annualised sales, the price-to-sales multiple is a low ~0.3x.
• The stock has corrected sharply from its 52-week high of ₹184.75 to ₹69, reducing froth.
• As a micro-cap trading and distribution company, a recovery in working capital turnover could offer operating leverage if sales stabilise.

Concerns

• P/E of 770.27 with latest quarter net profit of ₹0 Cr makes the valuation meaninglessly expensive.
• Sales growth is -15.28% and profit growth is -50.00%, showing clear deterioration.
• ROCE of only 3.11% and Piotroski F-Score of 3/9 indicate weak return on capital and poor financial health.
• No dividend, missing book value/promoter data, and the unexplained price below the stated 52-week low raise transparency and data quality concerns.

AI Analysis

At ₹69, Gautam Exim is a ₹22-crore micro-cap in a commodity-like business. As a trader and distributor, it has no pricing power, no brand moat, and no ability to differentiate itself. The numbers tell the same story. Sales have fallen 15.28%, profit growth is down 50%, and the latest quarter's net profit is zero. A P/E of 770.27 is not a valuation—it is a red flag. When earnings become this small, any price-to-earnings multiple becomes meaningless and flattering. ROCE is a paltry 3.11%, and the Piotroski score of 3 out of 9 suggests poor financial health. I cannot compute book value, return on equity, or debt-equity from the data; even promoter holding is unavailable. Graham would say investment requires adequate facts and a margin of safety. Here, we have neither. There is no dividend to compensate while waiting, and the quote itself puzzles me—the price of ₹69 sits below the stated 52-week range low of ₹112.03. Either the data is stale, or the market has decisively repriced this business lower. A small trading company with shrinking sales and negligible profits is not a wonderful business at a fair price; it is a mediocre business at an accounting oddity. I would not be a buyer merely because the market cap is small or the price-to-sales looks low. The price-to-sales, by the way, is about 0.3 times annualised sales of around ₹72 crore—but low sales multiples are useless when profits are zero. I would only revisit if I saw a sustained recovery in margins, sales growth, and a credible balance sheet. Until then, this is a pass.

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