Swashthik Plas. (544035)

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

Key Financials

Strengths

• P/E of 5.60 is low, especially with profit growth of 23.32% and PEG of 0.37.
• Latest quarter net profit of ₹6 crore supports an attractive annualized earnings yield.
• Piotroski F-Score of 7/9 suggests solid fundamental health.
• ROCE of 10.87% indicates positive returns on capital employed.
• Sales growth of 6.67% provides some momentum, even if modest.

Concerns

• Profit growth of 23.32% is far above sales growth of 6.67%, suggesting earnings quality may be margin-driven and not durable.
• Critical data missing: book value, debt/equity, and promoter holding—unacceptable for a Graham-style investor.
• Zero dividend yield means no cash return while waiting for value to be realised.
• Stock is at 52-week high of ₹75.97 after trading as low as ₹15.75, reducing margin of safety.

AI Analysis

Let me start with what I like: a P/E of 5.60, profit growth of 23.32%, a PEG of 0.37, and a Piotroski score of 7/9. At ₹133 crore market cap and a latest quarter net profit of ₹6 crore, the market is pricing the company at roughly five and a half times annualized earnings. That looks like the kind of price Ben Graham would call a margin of safety—if the earnings are real and repeatable. But I also notice sales growth is only 6.67%. Profit can outgrow sales for a few quarters through better margins, cost control, or a favourable product mix, but a 23% profit increase resting on 6.7% revenue growth is not the same as a durable franchise compounding. In industrial plastics, I do not see a proprietary moat; competition and raw material cycles tend to eat excess returns. ROCE of 10.87% is decent, but not a towering moat. I am troubled by the blank spaces: no book value, no debt/equity ratio, no promoter holding. In India's small-cap market, a promoter who does not hold meaningfully or disclose clearly is a red flag to me. A zero dividend means I am dependent on Mr. Market rather than being paid while I wait. The 52-week range of ₹15.75 to ₹75.97 tells me the stock has already had a huge re-rating. At the top of that range, the cheap P/E may be a value trap if profit growth slows. With a Piotroski F-score of 7, the company is financially okay today, but I need to see tomorrow's orders and balance sheet before I call it a real Buffett-style purchase. I would keep this on a watchlist, not a buy-and-hold core.

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