Swastika Castal (544452)

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

Key Financials

Strengths

• Return on capital employed (ROCE) is strong at 25.22%, indicating efficient capital use
• Sales growth of 27.43% shows healthy business expansion
• Profit growth of 238.46% and P/E of 13.84 suggest very attractive valuation if the earnings are sustainable
• Piotroski F-score of 7/9 points to sound financial fundamentals
• Low PEG ratio of 0.10 implies the market may be underpricing growth

Concerns

• Insufficient data on book value, debt/equity, promoter holding, and 52-week range limits full Graham-style analysis
• Latest quarterly net profit of ₹1 crore on sales of ₹17 crore signals thin net margins near 5.9%
• No dividend means no cash return to minority shareholders
• High profit growth may be distorted by a low base or cyclical tailwind in castings and forgings

AI Analysis

The first thing that strikes me is the price-to-earnings ratio of 13.84 with sales growing at 27.43% and profits up 238.46%. That kind of profit jump, however, needs a skeptical eye — a low base can flatter the math. The PEG ratio of 0.10 looks absurdly cheap, but I have learned that when something seems too cheap, the market may be missing a problem, or the data is incomplete. Here, I am troubled by the missing book value, debt-to-equity, promoter holding, and 52-week range. I cannot fully judge the balance sheet or who really owns this business. That is not the kind of shoe I want to step into without looking inside. What I do like is the return on capital employed at 25.22%, which shows the company is earning decently on the money it uses, and the Piotroski F-score of 7 out of 9 suggests decent financial health. But this is a small-cap with a market cap of just ₹49 crore and a quarterly net profit of only ₹1 crore on sales of ₹17 crore — a thin margin that could be volatile in a cyclical casting and forgings business. No dividend means the small shareholder must rely entirely on price appreciation and reinvestment. I would want to see the debt situation, cash flow, and a longer profit history before calling this a true compounder. For now, it is an interesting fast grower, but I would watch it closely.

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