Gujarat Peanut (544548)

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

Key Financials

Strengths

• ROCE of 22.64% shows efficient use of capital despite modest scale.
• P/E of 14.49 with a ₹89 Cr market cap is not expensive if earnings stabilise near current levels.
• Latest quarter revenue of ₹177 Cr against market cap of ₹89 Cr indicates a substantial turnover base.
• Latest quarter still generated a net profit of ₹3 Cr despite sales pressure.

Concerns

• Sales growth of -11.47% and profit growth of -14.05% show deteriorating momentum.
• Piotroski F-Score of 3/9 points to weak financial health and poor earnings quality.
• Net margin is razor-thin at roughly 1.7% (₹3 Cr profit on ₹177 Cr sales), leaving little room for cost shocks.
• Missing promoter holding, book value, debt/equity, and zero dividend make this a transparency red flag.

AI Analysis

At ₹87, Gujarat Peanut is a small, ₹89 crore market cap food-processing business. The first thing I notice is that the numbers don't tell a clean story. The trailing P/E of 14.49 implies earnings of about ₹6 crore, but sales fell 11.47% and profits fell 14.05%. In my experience, buying a business with falling earnings at 14 times earnings is not a bargain; it is a hope. The latest quarter shows ₹177 crore in sales and just ₹3 crore net profit—a net margin of roughly 1.7%. That is a razor-thin margin, typical of commodity processing with no pricing power. Peanuts are not a branded moat; unless Gujarat Peanut has a special low-cost position or long-term contracts, it is at the mercy of raw material prices and export demand. ROCE at 22.64% is genuinely impressive; it says the company earns well on its capital employed. But the Piotroski F-Score is only 3 out of 9, which is a red flag. It suggests deteriorating financials, and with no dividend, the shareholder is not being paid to wait. I also cannot see promoter holding, book value, or debt/equity—unacceptable when evaluating a microcap. Lack of data is itself a risk. At 14.49 times declining earnings, the market is not giving me a margin of safety. I would need to see stabilisation in sales, evidence of pricing power, and a much healthier F-score before calling this a value candidate. For now, this looks more like a cyclical/commodity small-cap with good capital efficiency but weak earnings quality.

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