Clara Industries (543435)

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

Key Financials

Strengths

• Sales growth is strong at 46.33%, showing healthy demand for the packaging business
• Latest quarter is profitable with ₹5 Cr sales and ₹1 Cr net profit
• Stock is trading at its 52-week high of ₹45.90, reflecting positive market sentiment
• ROCE is positive at 6.92%, indicating some capital efficiency, though modest

Concerns

• P/E ratio of 53.90 is very expensive for a company with declining profits (−11.43%)
• Piotroski F-Score of 4/9 points to weak fundamental health
• No dividend means investors depend entirely on price appreciation
• Very small absolute scale: quarterly sales of ₹5 Cr against a ₹100 Cr market cap

AI Analysis

Let me start with what I understand. Packaging is a business I can roughly grasp, but understanding the industry is not enough; I need a margin of safety. Clara Industries sells at ₹45.90, giving a market cap of ₹100 Cr. That is a small business. Sales grew 46.33%, which sounds exciting, but profit fell 11.43%. In my experience, when revenue races ahead while earnings go backwards, growth is being bought, not earned. The latest quarter shows sales of ₹5 Cr and net profit of ₹1 Cr. Against a ₹100 Cr market cap, that is a very small earnings base. The reported P/E of 53.90 demands perfection. ROCE is only 6.92%, which is far below what I would want from a small, risky packaging firm. The Piotroski F-Score of 4/9 also suggests the underlying financial health is not improving. There is no dividend, so the entire return depends on someone else paying more later. That is speculation, not investment. The stock is near its 52-week high of ₹45.90, but a near-high price is not evidence of value. Even the PEG ratio of 1.16 is flattered by the 46% sales growth, while profit growth is negative. I would need years of consistently rising earnings, acceptable ROCE, and a much lower price before I could call this an investment. At this price, it is a fast-growing business with slow-growing profits, and that is not a combination I am willing to buy.

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