Beacon Trust. (BEACON)

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

Key Financials

Strengths

• ROCE of 24.45% signals strong capital efficiency in a financial intermediary.
• Piotroski F-Score of 7/9 indicates decent financial health across profitability, leverage and efficiency.
• Sales growth of 37.61% shows strong business traction.
• Latest quarter sales of ₹18 Cr and net profit of ₹5 Cr, if sustained, give meaningful earnings power.
• Promoter holding of 46.15% aligns owner interests with minority shareholders.

Concerns

• Profit growth of only 7.62% lags sales growth of 37.61% by a wide margin, suggesting margin pressure or rising costs.
• The stated P/E of 23.85 is hard to reconcile with a quarterly profit of ₹5 Cr annualising to ~₹20 Cr; earnings consistency needs scrutiny.
• A zero dividend yield means the investor receives no cash while waiting, and the price is near the ₹124.80 high.
• Absence of book value, ROE and debt data prevents a Graham-style margin-of-safety analysis.

AI Analysis

Let me start with the basics. Beacon Trust has a market cap of ₹145 Cr and trades at ₹108.10, near the upper end of a ₹50.00-₹124.80 range. At a P/E of 23.85, this is not a Graham bargain. What I can measure is also incomplete: no book value, no ROE, and no debt-equity ratio are available. A Graham analyst does not like to value a financial intermediary without a balance sheet in hand. The company does earn a strong 24.45% ROCE and has a Piotroski score of 7/9, which suggests decent financial health. But the growth story is not clean: sales rose 37.61% while profit rose only 7.62%. That gap means revenue is growing much faster than the bottom line; either costs are rising, margins are under pressure, or the company is reinvesting. The latest quarter shows ₹18 Cr of sales and ₹5 Cr of profit. If I annualise that quarterly profit, I get roughly ₹20 Cr, which would make the P/E much lower than 23.85; the stated P/E, however, implies about ₹6 Cr of trailing earnings. I cannot ignore that contradiction. The dividend yield is zero, so there is no cash payment while I wait; all my return must come from capital gains. Promoter holding of 46.15% is reasonable, but it does not replace sound financial disclosure. The PEG ratio of 1.05 appears to assume around 23% earnings growth, while reported profit growth is just 7.62%. I would rather pay for demonstrated earnings power than for hope. This may be a useful intermediary, but it lacks the margin of safety I require. I will wait until profit catches up with revenue and the reported figures make one consistent story.

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