Evans Electric (542668)

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

Key Financials

Strengths

• Sales growth of 44.23% indicates strong demand or business expansion
• ROCE of 40.82% shows efficient use of capital if sustained
• Trailing P/E of 7.38 and PEG of 0.17 appear undemanding if earnings recover
• Dividend yield of 1.61% provides modest downside support

Concerns

• Profit growth is -67.35%, and latest quarter net profit is ₹0 Cr on sales of ₹7 Cr, showing severe margin compression
• Piotroski F-Score of 4/9 points to weak or deteriorating financial health
• Critical data missing: book value, debt/equity, and promoter holding, making valuation and governance assessment impossible
• Stock has zoomed from ₹60 to ₹284.95, leaving limited margin of safety if the turnaround fails

AI Analysis

At ₹284.95, Evans Electric has a market cap of just ₹156 Cr and a trailing P/E of 7.38. At first glance, that looks cheap. But Graham taught me to focus on earning power, not the multiple. Sales grew 44.23%, yet profits fell 67.35%. The latest quarter tells the real story: ₹7 Cr in revenue and zero net profit. That is a business with collapsing margins, not a compounding machine. The 40.82% ROCE is impressive historically, but without book value, debt/equity, or promoter holding data, I cannot judge the balance sheet or who is truly at the wheel. The Piotroski F-Score of 4/9 reinforces my caution: financial health appears weak or deteriorating. The stock has already run from ₹60 to ₹284.95, so Mr. Market has priced in a recovery. At this price, the margin of safety is thin if the zero-profit quarter persists. A dividend yield of 1.61% offers little comfort. I would rather wait for proof that margins, cash profits, and disclosed financials improve before paying ₹285 for a possible turnaround. This is not a stalwart; it is a speculative improvement story. In value investing, you pay a fair price for a wonderful business, not a wonderful price for a business whose profits have vanished.

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