Cospower Engine. (543172)

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

Key Financials

Strengths

• Recent sales and profit growth are exceptional: 361.70% and 651.22% respectively.
• Latest quarter converted ₹33 Cr revenue into ₹2 Cr net profit, implying a ~6% net margin.
• ROCE of 14.39% shows respectable capital efficiency for an industrial products company.
• Piotroski F-Score of 7/9 indicates generally healthy financials across profitability, leverage and efficiency metrics.

Concerns

• The stock is trading at ₹290, below its stated 52-week range low of ₹595 — a major red flag or data inconsistency.
• P/E of 42.83 is high; with zero dividend yield, all returns depend on uncertain future price gains.
• Insufficient disclosure: no Book Value, ROE, Debt/Equity, or Promoter Holding data makes true fundamental valuation impossible.
• Trailing earnings implied by market cap and P/E (~₹1.07 Cr) are far below the latest quarterly profit of ₹2 Cr, raising doubts about earnings consistency.

AI Analysis

Looking only at the figures, I cannot honestly call Cospower Engine a business I understand. Sales growth of 361.70% and profit growth of 651.22% look spectacular, but Graham taught me to be suspicious of numbers that appear too good. The latest quarter shows sales of ₹33 crore and net profit of ₹2 crore, a roughly 6% margin. ROCE of 14.39% is decent, and the Piotroski F-score of 7/9 suggests the company is not financially weak. But where is the margin of safety? The price is ₹290, which is below the stated 52-week low of ₹595. That is either a data error or a serious red flag. A P/E of 42.83 is expensive, and with no dividend, the shareholder must depend entirely on price appreciation. I do not know the book value, debt/equity ratio, ROE, or promoter holding. Without those fundamentals, I cannot value the business or gauge the risk of dilution or distress. The PEG of 0.08 is seductive, but a PEG based on 651% profit growth is meaningless if the base was tiny or growth is not durable. For a ₹46 crore market cap, this is a speculation for traders, not an investment for the intelligent investor. A company with genuine competitive advantages would have a moat, pricing power, and transparent numbers. I see none here. I would need full financial statements, several quarters of consistency, and a reasonable price below intrinsic value before acting. As Benjamin Graham would say, investing is most intelligent when it is most businesslike. This micro-cap does not pass that test.

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