Chetana Educa. (CHETANA)

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

Key Financials

Strengths

• ROCE of 23.26% indicates strong capital efficiency.
• Low P/E of 6.30 offers statistical cheapness if earnings hold up.
• Promoter holding of 74.02% aligns management with minority shareholders.
• Latest quarter shows ₹59 Cr sales and ₹9 Cr net profit, implying a healthy ~15% margin.

Concerns

• Sales growth is just 0.79% and profit growth is negative at -6.92%.
• Piotroski F-score of 4/9 signals weak or deteriorating financial health.
• Zero dividend yield means no income support while growth is stagnant.
• Missing book value, ROE, and debt-equity data make a proper margin-of-safety calculation impossible.

AI Analysis

At first glance, this looks like a Benjamin Graham screen: P/E of 6.30 and a market cap of ₹81 Cr. But value investing is not buying low multiples blindly; it is buying business quality at a discount. Chetana Educa earns a solid ROCE of 23.26%, which tells me the company is generating good returns on the capital employed. Yet the top line is almost frozen: sales growth of 0.79%. Profit growth is negative at -6.92%. That is not a compounder. A Graham investor wants earnings power, and here the latest quarter does show sales of ₹59 Cr and net profit of ₹9 Cr, which is a respectable 15% margin. But one quarter is not a franchise. The Piotroski F-score of 4 out of 9 is a red flag; it suggests deteriorating financial fundamentals beneath the surface. The absence of book value, ROE, and debt-equity data prevents me from calculating a traditional margin of safety. I also do not like a dividend yield of zero. A business with little growth and no dividend is asking shareholders to rely entirely on price appreciation, which is speculative. The PEG ratio of 7.97 is not meaningful except to confirm that growth is nearly nil. So a low P/E can be a value trap if earnings stagnate or decline. Promoter holding of 74.02% is comforting, but minority investors still need transparency. I would need evidence of stable or improving operating margins, a clean balance sheet, and a clear path to growth before I commit capital. At the right price, with these returns on capital, it could become interesting. For now, it is a slow grower at best, and I would put it on the watchlist rather than in the portfolio.

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