Technichem Org. (544327)

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

Key Financials

Strengths

• ROCE of 13.82% suggests capital is being deployed reasonably in the chemicals business.
• Sales growth of 5.73% shows revenue is not contracting despite profit pressure.
• Latest quarter remains profitable: ₹1 Cr net profit on ₹28 Cr sales.
• Small market cap of ₹78 Cr keeps the base low if fundamentals improve.

Concerns

• Profit growth has collapsed by 42.59%, while P/E stands at 25.06—expensive for negative earnings momentum.
• Piotroski F-Score of 4/9 signals weak financial health.
• PEG ratio of 4.37 suggests the valuation is far ahead of growth.
• Key balance-sheet and governance data—book value, debt/equity, promoter holding—are unavailable, so downside risk cannot be assessed.

AI Analysis

At ₹45, Technichem Org. wears a market cap of only ₹78 crore. That's small, and in small companies I demand even more visible evidence of quality. What do I see? Sales grew 5.73%, but profits collapsed by 42.59%. The latest quarter still earned only ₹1 crore on ₹28 crore of sales—a thin margin. A 25.06 P/E on falling earnings is not Benjamin Graham's idea of a bargain; the PEG of 4.37 confirms that growth doesn't justify the price. ROCE of 13.82% is decent, but with book value, debt-to-equity, and promoter holding unavailable, I cannot judge balance-sheet safety or alignment. The Piotroski F-Score of 4/9 points to weak financial health. There is no dividend, so the only return is from future earnings growth—and that growth is currently going backwards. In my circle of competence, I want consistency, identifiable moats, and margin of safety. This has none of those in convincing form. Even the advanced indicators do not comfort me: a Piotroski score of 4 out of 9 means the firm fails several basic quality tests, and the 13.82% ROCE, while respectable, is not an exceptional moat. At this price, the stock is being valued at 25 times trailing earnings, while the latest quarter's profit of ₹1 crore is too small to celebrate. Without book value or debt details, I cannot calculate downside protection. Graham always insisted on a margin of safety; reading these numbers, I find no margin—only hope. I will leave this in the 'too hard' pile until the business posts several consistent quarters and the balance sheet is made visible.

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