Century Extrus. (CENTEXT)

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

Key Financials

Strengths

• PEG of 0.81 with ~18% sales/profit growth is not demanding at 14.80 times earnings
• ROCE of 18.30% and ROE of 13.69% suggest decent capital efficiency
• Piotroski F-Score of 7/9 indicates healthy financial fundamentals
• Debt/equity of 0.64 is manageable for a mid-sized industrial
• Promoter holding of 52.04% aligns owner interests

Concerns

• Zero dividend yield means no income cushion for shareholders
• Latest quarter implies a thin net margin of roughly 2.4%, vulnerable to commodity price swings
• Commodity-based aluminium/copper/zinc products face cyclical demand and limited pricing power
• Price is well below the 52-week high of ₹34.75, reflecting the stock's volatility

AI Analysis

At ₹21.51, Century Extrusions is a small aluminium extrusion player with a market cap of ₹158 crore. Let me apply Graham and my own filters. The first thing I notice is growth: sales and profits are both growing around 18%. At a P/E of 14.80, the PEG works out to 0.81, which suggests the market is not paying much for that growth. But I must not let a low PEG seduce me into a commodity business. This is aluminium, copper and zinc products—there is no inherent pricing power. The product is largely a cyclical input, so 18% growth may reflect the cycle, not durable compounding. The financial health is acceptable: debt/equity of 0.64, return on equity of 13.69%, and return on capital employed of 18.30%. A Piotroski F-score of 7/9 tells me the fundamentals are improving and the balance sheet is not deteriorating. Promoters own 52.04%, so their interests are reasonably aligned with mine. However, there is no dividend. I like companies that pay me to wait; here I am entirely dependent on business growth and market sentiment. The latest quarter shows net profit of ₹3 crore on sales of ₹123 crore—roughly a 2.4% net margin. That is thin. In a down cycle, such margins can vanish. The share has traded from ₹15.67 to ₹34.75 over 52 weeks, and today's ₹21.51 reminds me that cyclical shares can fall hard. Book value is ₹9.64, so I am paying 2.23 times book for a business whose future depends on commodity prices. Is this a wonderful business? No. Is it a cheap stock? Perhaps modestly, at a P/E of 14.80, if growth holds. But I would classify it as a cyclical, not a compounder. I would demand a margin of safety and keep the position small.

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