Bhatia Colour (543497)

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

Key Financials

Strengths

• Sales growth of 21.53% and profit growth of 54.15% show current momentum
• Piotroski F-Score of 7/9 suggests reasonably sound financial health
• Latest quarter is profitable with ₹72 crore sales and ₹3 crore net profit
• PEG of 1.39 is not extreme if the high growth rate is sustainable

Concerns

• P/E of 52.73 is expensive, with no dividend yield to compensate
• ROCE of only 7.73% indicates weak return on invested capital
• Price has collapsed from ₹430 to ₹52, signaling possible cyclical or structural distress
• Critical data missing: book value, debt/equity, promoter holding, making thorough valuation impossible

AI Analysis

At ₹52, Bhatia Colour is down nearly 88% from its 52-week high of ₹430. That alone demands humility. A P/E of 52.73 is far too rich for a company with ROCE of just 7.73% and zero dividend. The latest quarter shows ₹72 crore sales and ₹3 crore profit — a thin 4.2% margin — but the stated P/E implies a trailing profit of only about ₹1.2 crore, so I worry about seasonality, one-offs, or data quality. Graham would say: first, don't lose money. A 52.7 P/E with no yield gives no margin of safety. The positive side: sales are growing 21.53%, profit growth is 54.15%, and the Piotroski F-Score of 7 suggests the business isn't financially distressed. PEG of 1.39 looks reasonable if that growth continues, but in specialty chemicals, cyclicality can turn a fast grower into a value trap. I cannot assess a moat because book value, debt/equity, and promoter holding are not provided. Without those, I'm flying blind. A 7.73% return on capital tells me this is not a wonderful compounder; it's a marginal business that needs operational improvement. I'd watch whether net margins expand, ROCE moves into double digits, and management explains the 88% price collapse. I might be interested at a much lower price, or after the next few quarters prove the profit spike is sustainable. For now, this is a cyclical special situation, not a Buffett-style buy.

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