CWD (543378)

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

Key Financials

Strengths

• Sales growth of 490.39% and profit growth of 328.96% show strong recent demand inflection.
• Piotroski F-Score of 7/9 indicates improving financial health across profitability, leverage, and efficiency.
• PEG of 0.21 suggests valuation could become reasonable if the latest growth persists; latest quarter sales ₹41 Cr and net profit ₹4 Cr confirm momentum.
• Price at 52-week high of ₹689.65 reflects strong market conviction in the growth story.

Concerns

• P/E of 85.89 is very expensive; trailing earnings are tiny, so the market is paying heavily for future growth.
• ROCE of 9.51% is modest and does not signal a wide moat or exceptional capital efficiency.
• Zero dividend yield means no income cushion while waiting for the growth story to play out.
• Critical data missing: book value, ROE, debt/equity, promoter holding — insufficient transparency for a Graham-style investor.

AI Analysis

Let me start with what I don't know. There is no book value, no return on equity, no debt-to-equity ratio, and no promoter holding figure. As Graham said, you cannot assess a business you cannot measure. So this analysis is necessarily incomplete. What I do see is a small consumer electronics company, market cap ₹251 Cr, trading at ₹689.65 — the top of its 52-week range. The P/E is 85.89. That is a rich price for any business. The growth figures look spectacular: sales up 490%, profit up 329%. But the base is tiny: latest quarter sales ₹41 Cr, net profit ₹4 Cr. The trailing earnings behind that P/E are roughly ₹3 Cr. So we are paying a huge premium for a recent inflection, not years of proven earnings. ROCE is just 9.51% — hardly a sign of a wide moat or strong capital efficiency. The Piotroski score of 7/9 does suggest a healthier financial position than many small caps, and the PEG of 0.21 implies that if today's growth continues, valuation becomes reasonable. But "if" is not a margin of safety. Consumer electronics is brutal, with rapid product cycles, pricing pressure, and fickle demand. Even 490% sales growth cannot justify paying 86 times earnings unless that growth is durable. The dividend yield is zero, so all returns depend on re-rating and earnings delivery. This is a fast grower, not a stalwart. I would wait for more data, more quarters proving the trend, and better evidence of moats — or a lower price.

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