L.K.Mehta Poly. (544366)

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

Key Financials

Strengths

• Sales growth of 114.77% indicates strong demand traction or a major business expansion.
• Piotroski F-Score of 7/9 suggests improving financial health and operational fundamentals.
• ROCE of 10.59% is a positive sign of capital deployment efficiency.
• PEG of 0.39 suggests the market may be underpricing future growth, if growth is sustainable.

Concerns

• Latest quarter net profit is ₹0 Cr despite ₹15 Cr sales, showing poor conversion of revenue into profits.
• Critical data missing: book value, ROE, debt/equity, and promoter holding; balance-sheet risk cannot be assessed.
• P/E of 25.98 is not cheap, especially with zero dividend yield.
• Tiny market cap of ₹17 Cr makes the stock vulnerable to volatility, illiquidity, and governance issues.

AI Analysis

At ₹43.99 and a market cap of just ₹17 Cr, this is a very small industrial plastics business. As a value investor, I first look for the ability to generate consistent earnings, but here the picture is incomplete: book value, ROE, debt/equity, and promoter holding are all missing. That alone would make Benjamin Graham cautious. What is visible is a 114.77% sales growth and a 20% profit growth, which is striking. A Piotroski F-Score of 7/9 also suggests recent fundamental improvement. But I must measure quality by profit conversion, and the latest quarter shows sales of ₹15 Cr with net profit of ₹0 Cr. That tells me this business is still struggling to turn revenue into shareholder earnings. At a P/E of 25.98, I am paying over 26 times trailing earnings for a company with no dividend and no proven moat. Plastic products in a competitive industrial market rarely enjoy durable pricing power. The PEG ratio of 0.39 is tempting, but it only means something if the hyper-growth in sales flows to the bottom line. ROCE of 10.59% is respectable, not exceptional. For a ₹17 Cr market cap company, liquidity and governance risk are serious concerns. I would not call this a Graham-style investment; there is too much missing data and too little current profitability. It could be an early-stage fast grower, but the burden of proof is on the company to show sustainable margins, stronger net profit, and transparent disclosure. Until then, this belongs on a watch list, not a big position.

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