Gautam Exim (540613)

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

Key Financials

AI Analysis

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

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.

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