New Swan (544082)

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

Key Financials

Strengths

• Trailing P/E of 8.07 offers a low valuation relative to current earnings.
• ROCE of 14.96% suggests a reasonable return on capital employed.
• Latest quarter remains profitable with ₹5 Cr net profit on ₹82 Cr sales.
• Modest dividend yield of 1.06% provides some income while waiting.

Concerns

• Sales and profit are shrinking at -1.43% and -8.22%, respectively, so the low P/E could rise if earnings keep falling.
• Piotroski F-Score of 3/9 signals weak financial health and poor fundamentals.
• Book value, debt/equity, ROE, and promoter holding are not disclosed, so balance-sheet safety cannot be verified.
• Tiny market cap of ₹89 Cr makes it a micro-cap with potential liquidity and volatility risks.

AI Analysis

New Swan is not the kind of stock I would normally spend much time on: small market cap, shrinking earnings, and no obvious moat. At ₹47, the market capitalisation is just ₹89 crore. The P/E of 8.07 looks cheap, but cheap can be dangerous when earnings are declining. Sales fell 1.43% and profit fell 8.22%. The latest quarter shows revenue of ₹82 crore and net profit of ₹5 crore, so the business is still making money, but it is not compounding. ROCE of 14.96% is a reasonable signal; it suggests the company earns a decent return on capital employed. Yet I cannot judge the balance sheet because book value, debt-to-equity, and promoter holding are not disclosed. The Piotroski F-Score of 3 out of 9 is a serious warning. It points to weak financial health and poor operating fundamentals. Graham would say the margin of safety must come from both price and quality. Here the price is low, but the quality is questionable. The 1.06% dividend yield provides little comfort. Auto components is a cyclical sector, so a decline in sales and profit may be temporary. But I see no evidence of a turnaround yet. Without data on return on equity or leverage, I cannot estimate a fair value with confidence. This is not a wonderful business at a fair price; it is a cyclical business at a low price. For a retail investor, that is a speculative idea, not a sound investment. I would wait for stable growth, better financial disclosures, and proof that the Piotroski score improves before acting.

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