Creative Graphic (CGRAPHICS)

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

Key Financials

Strengths

• ROCE of 25.73% signals capital-efficient operations and possible pricing power
• Sales growth of 55.59% and profit growth of 33.44% show strong business momentum
• PEG of 0.33 suggests the market is pricing the stock below its growth rate
• Promoter holding of 68.07% aligns management interests with minority shareholders
• Piotroski F-Score of 7/9 points to solid fundamentals and low distress risk

Concerns

• Profit growth of 33.44% trails sales growth of 55.59%, implying margin compression
• Latest quarter PAT margin is roughly 6.8%, which is thin and leaves little room for error
• Critical financial metrics like book value, ROE, and debt/equity are not available, limiting full balance sheet assessment
• Zero dividend means no cash return to shareholders; reinvestment must keep earning high ROCE

AI Analysis

When I see a company with a return on capital employed of 25.73%, I sit up. That is the kind of efficiency that suggests a genuine economic moat, not just a business growing because of leverage or a weak base. Sales growth of 55.59% and profit growth of 33.44% tell me demand is strong, but profit is not keeping pace with revenue. That is a warning: competition or rising costs are eating into margins. The latest quarter’s net profit of ₹12 Cr against sales of ₹176 Cr is roughly a 6.8% margin, which is thin. I need to know whether that margin is temporary or structural. The Piotroski F-Score of 7/9 is reassuring, and the promoter holding of 68.07% means the people running the business have real skin in the game. I also note the company pays no dividend, so profits are being reinvested; that is fine only if returns on capital stay high. On valuation, a P/E of 14.51 with 33.44% profit growth gives a PEG of 0.33. That looks cheap, but Graham taught me to be suspicious of things that look too cheap. The 52-week range of ₹123.15 to ₹259.00 shows Mr. Market has been emotional. My biggest problem is the missing data: no book value, no ROE, no debt-to-equity. A value investor cannot properly assess financial strength with such gaps. At ₹164.65, the market cap is only ₹346 Cr, so this is a small-cap industrial player; nimbleness can be an advantage, but small caps also carry higher risk. I would want a larger margin of safety and more years of evidence before calling this a permanent compounding machine.

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