SM Auto Stamping (543065)

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

Key Financials

AI Analysis

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

First, the numbers look temptingly cheap: at ₹58.50, the market is paying ₹80 crore for the whole business, and the P/E is just 8.09. Reported profit grew 203.85%, while sales grew 10.46%, and the PEG works out to 0.08. A disciplined investor would say that is either a gift or a trap. I lean toward caution. This is an auto stamping company—a supplier in a cyclical industry, competing for orders from powerful auto manufacturers. The latest quarter earned only ₹1 crore on ₹34 crore of sales, which is about a 3% net margin. That is thin, and thin margins can vanish quickly when raw material costs rise or OEMs squeeze prices. The 203.85% profit growth may be a recovery from a weak base rather than a durable compounding machine. Sales growth of 10.46% is decent, but not enough to explain such a profit jump. I do give credit to the 18.69% ROCE and a Piotroski score of 7, which suggest the company is not mismanaged. Still, with no dividend, no book value, no debt/equity ratio, and no promoter holding data, I cannot compute a margin of safety the way Graham would want. The stock has already rallied from ₹15.05 to ₹58.50 in 52 weeks, so the market has noticed. I would wait, study the next few quarters, and only consider buying if margins stay stable through the next downturn.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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