Fabtech Techn. (544332)

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

Key Financials

Strengths

• Sales growth of 23.03% shows robust demand momentum.
• ROCE of 21.16% indicates efficient use of capital.
• Latest quarter is profitable with ₹4 Cr net profit on ₹76 Cr sales.
• Dividend yield of 0.77% offers a small but positive return to shareholders.

Concerns

• Profit growth of -24.53% despite revenue growth points to significant margin compression.
• Piotroski F-Score of 4/9 suggests deteriorating financial health.
• P/E of 26.8 is expensive for a business with declining earnings; the PEG ratio is based on sales growth, not profit growth.
• Insufficient data on book value, return on equity, debt levels, and promoter holding prevents a full Graham-style assessment.

AI Analysis

Looking at Fabtech Techn, I see a company with two conflicting stories. On one side, sales grew 23.03% and latest quarter revenue stood at ₹76 Cr; ROCE of 21.16% tells me the enterprise is generating decent returns on capital. On the other side, net profit fell 24.53%. Latest quarter profit of ₹4 Cr is thin—about 5% net margin. At ₹320 Cr market cap and a P/E of 26.8, I am paying a substantial multiple for a business whose earnings are heading south. Even if I annualise the latest quarter's profit, I get roughly ₹16 Cr, implying a more reasonable but still not cheap ~20 times earnings. The PEG of 1.16 is misleading because it is computed against sales growth, not profit growth. The Piotroski F-Score of 4 out of 9 suggests deteriorating fundamentals—either profitability, leverage, or asset efficiency issues. I lack data on book value, return on equity, debt levels, and promoter holding. Benjamin Graham always demanded a margin of safety; I don't see one here. A 0.77% dividend is little compensation while I wait. This looks like a cyclical industrial player enjoying healthy demand growth but facing cost or margin pressures. The 21% ROCE suggests some competitive position, but the declining profit and weak F-Score keep me cautious. I would not invest unless I could check the balance sheet and see clear evidence that profit growth has turned positive. For now, it's a watchlist candidate.

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