Sealmatic India (543782)

FairStock Score: 36/100 — MIXED

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

Key Financials

Strengths

• ROCE of 21.99% indicates efficient generation of returns on capital
• Piotroski F-Score of 7/9 points to sound financial health
• Sales growth of 22.08% shows strong demand for products
• Latest quarter net profit of ₹7 Cr on ₹54 Cr sales implies a 13% margin

Concerns

• Profit growth of just 0.62% versus sales growth of 22.08% signals significant margin compression
• P/E of 24.25 with nearly stagnant earnings leaves no margin of safety
• Dividend yield of 0.26% offers negligible cash return to shareholders
• Stock is at its 52-week high, already pricing in optimism

AI Analysis

Dear investor, at 685 rupees, Sealmatic India presents a classic case of revenue without reward. The company grew sales at 22% but net profit only 0.62%—a red flag that expansion isn't translating to owner earnings. With a P/E of 24.25, the market is paying a high multiple for stagnant profits. Using the PEG ratio of 1.45, even adjusting for growth, it's above my comfort threshold of 1. ROCE of 21.99% is respectable, and the Piotroski F-score of 7 suggests a decent balance sheet, but I don't buy good scores alone—I need a margin of safety. The latest quarter shows sales of 54 crore and profit of 7 crore, a margin of 13%, but if that's not improving while sales grow, competition or cost pressures may be eating away. Dividend yield is a mere 0.26%, so shareholders depend entirely on capital appreciation. The stock sits at its 52-week high of 685.10, having nearly doubled from 317.10, but without earnings support, that rise is speculative. In true Graham fashion, I ask: What price am I paying for what the business can deliver? Today, the answer is a P/E of 24, with no profit growth. That's not an investment—it's a bet on future margins improving. I would patiently wait for a better price or clear evidence of margin expansion. As Graham said, price is what you pay, value is what you get. Here, the value depends on future execution, not current results.

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