Kalyani Cast-Tec (544023)

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

Key Financials

Strengths

• ROCE of 29.55% signals strong capital efficiency and likely pricing power.
• Sales growth of 31.62% shows healthy demand momentum.
• Piotroski F-Score of 7/9 indicates generally sound financial health.
• PEG of 0.84 suggests growth is not expensively priced if current momentum continues.
• Latest quarter sales of ₹92 Cr and net profit of ₹10 Cr reflect meaningful operating scale.

Concerns

• P/E of 21.20 with trailing earnings of roughly ₹16 Cr conflicts with a ₹10 Cr single-quarter profit; sustainability needs verification.
• Dividend yield is 0.00%, so investors rely entirely on reinvestment by management.
• Price is near the 52-week low of ₹438.65, down from ₹735.00, indicating possible de-rating or business headwinds.
• Critical inputs like book value, debt/equity, ROE, and promoter holding are unavailable, limiting conviction.

AI Analysis

Let me look at Kalyani Cast-Tec as an owner, not a trader. The first thing that catches my eye is ROCE of 29.55%. In my experience, a business that can turn its capital into returns at nearly thirty percent has some real pricing power or operational efficiency. Sales jumped 31.62% and profit grew 18.98%; that is respectable, though profit lagging sales tells me margins are being tested, perhaps by input costs or reinvestment. The price is ₹451.35, market cap ₹341 Cr, and the reported P/E is 21.20. Using the latest quarter profit of ₹10 Cr and sales of ₹92 Cr, the run-rate picture looks cheaper, but I must not annualise one quarter blindly. The trailing P/E implies roughly ₹16 Cr in profits; that gap from a ₹10 Cr single quarter demands an explanation. A 7/9 Piotroski score suggests the company is financially sound, but I would want to know the missing items: debt/equity, book value, return on equity, and promoter holding. A Graham analyst never relies on incomplete evidence. The stock trades near the bottom of its 52-week range, ₹438.65 to ₹735.00. That could be Mr. Market being fearful after a de-rating, or it could be a signal that the growth is slowing. PEG of 0.84 is encouraging if profit can stay on this path; it tells me expectations are not too stretched. But no dividend means the investor must depend entirely on management's ability to reinvest. At 21 times earnings, there is no huge margin of safety. I would need to see a few more quarters of ₹90 Cr+ sales and ₹10 Cr profits before I could call it a clear 'buy'. For now, it is a promising fast grower, but not yet a fat pitch.

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