Systematic Inds. (544541)

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

Key Financials

Strengths

• Sales growth of 54.04% indicates strong demand and business momentum.
• Profit growth of 36.47% shows earnings are scaling, though slower than sales.
• ROCE of 20.60% reflects decent capital efficiency.
• Piotroski F-Score of 7/9 suggests generally sound fundamentals.
• PEG of 0.37 and P/E of 16.74 make valuation reasonable relative to growth.

Concerns

• Latest quarter net margin is very thin at about 3.5% on ₹254 Cr sales and ₹9 Cr profit.
• Profit growth trailing sales growth suggests possible margin pressure or rising costs.
• No dividend is paid, so shareholder returns depend entirely on capital appreciation.
• Insufficient data on debt/equity, book value, and promoter holding leaves financial risk unverified.

AI Analysis

Let me look at Systematic Inds. with a simple lens. At ₹154, the market cap is ₹344 Cr and the P/E sits at 16.74. A cables and electrical business growing sales by 54.04% and profits by 36.47% certainly grabs attention, but I always ask: what am I actually buying? The latest quarter shows sales of ₹254 Cr and net profit of only ₹9 Cr—that is a net margin of roughly 3.5%. That is thin, and it tells me this is a competitive, relatively low-moat business where pricing power is limited. The ROCE of 20.60% is encouraging; it suggests capital is being deployed reasonably well. The Piotroski F-Score of 7/9 also adds some confidence in the financial health. But there are glaring gaps: no book value, no debt/equity ratio, and no promoter holding data. Graham would remind me that if I cannot measure the balance sheet, I cannot value the business properly. I do not like the zero dividend; as a minority shareholder, I need either cash returned or clear evidence that retained earnings are compounding at a high rate. The PEG ratio of 0.37 looks seductive, but profit growth is lagging sales growth. That divergence means either costs are rising or the company is buying growth. At 16.74 times earnings, the market is not paying a crazy price, but this is not a wide-moat stalwart either. I would keep it on my watchlist, and only consider acting if margins stabilise and the company becomes more transparent about debt and promoter holdings.

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