Khyati Global (544270)

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

Key Financials

Strengths

• Valuation appears cheap: P/E of 5.97 and PEG of 0.75.
• ROCE of 19.86% indicates decent capital efficiency for a small distributor.
• Piotroski F-Score of 7/9 suggests reasonable financial health.
• Profit growth of 8.68% is slightly ahead of sales growth of 7.25%, showing modest operating improvement.
• Latest quarter net profit of ₹3 Cr on sales of ₹63 Cr implies a workable margin.

Concerns

• Trading and distribution businesses typically have low moats and limited pricing power.
• Critical data missing: book value, debt/equity, promoter holding, and ROE are not available.
• No dividend yield, so investor returns depend entirely on earnings growth and re-rating.
• Very small market cap of ₹30 Cr amplifies risk and limits institutional interest.

AI Analysis

At ₹42.50 with a market cap of just ₹30 Cr, Khyati Global is the kind of micro-cap that requires extra caution. The P/E of 5.97 and a PEG of 0.75 suggest the market expects little, but a low price alone is not a bargain. In trading and distribution, there is usually no durable moat; margins depend on relationships and execution. The latest quarter shows net profit of ₹3 Cr on sales of ₹63 Cr, a margin of roughly 4.8%, which is not terrible but hardly insulating. Sales growth of 7.25% and profit growth of 8.68% are steady, but not exciting. ROCE at 19.86% is respectable, and a Piotroski F-score of 7/9 tells me the balance sheet shows some healthy signals. Yet I cannot get comfortable with the missing information: no book value, no debt/equity, no promoter holding. In a 30-crore company, the promoter's skin in the game matters enormously. The company pays no dividend, so returns must come from price appreciation and earnings growth. At under 6 times earnings, if the business can maintain even its modest growth, the stock may be cheap. But this is not a great business; it is a small trader with a fair price. I would demand a wider margin of safety, and I would only consider it as a very small position after studying the cash conversion, working capital cycles, and management capital allocation.

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