Cool Caps (COOLCAPS)

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

Key Financials

Strengths

• Sales growth of 177.83% shows strong expansion and demand for the company's packaging products.
• Latest quarter sales of ₹267 Cr against a market cap of ₹335 Cr indicates a substantial revenue base relative to valuation.
• ROCE of 15.77% suggests reasonable capital efficiency.
• Piotroski F-score of 7/9 points to generally healthy operational and financial signals.
• Promoter holding of 66.66% aligns owners with minority shareholders.

Concerns

• Profit growth of only 1.57% is far below sales growth, showing revenue is not converting into earnings.
• Latest quarter net profit of ₹5 Cr on ₹267 Cr sales means a razor-thin net margin of about 1.9%.
• P/E of 27.77 looks expensive when earnings growth is nearly flat; the PEG of 0.21 assumes an aggressive profit rebound, not current reality.
• Stock is down sharply from ₹99.50 to ₹28 and pays no dividend, so there is no yield support while waiting for recovery.

AI Analysis

I start with what I can measure. Cool Caps is a packaging business, and I can understand that. But the numbers tell a split story. Sales growth of 177.83% would normally excite me, and the latest quarter's ₹267 crore in sales on a ₹335 crore market cap suggests a large revenue machine. Yet profit growth is only 1.57%, and the latest quarter's net profit is just ₹5 crore on ₹267 crore of sales. That is a net margin of roughly 1.9%—razor thin. A business that cannot convert a surge in revenue into earnings may be merely operating in a competitive, low-margin segment. The ROCE of 15.77% is decent, and a Piotroski F-score of 7/9 suggests no immediate balance-sheet red flags. Promoter holding of 66.66% is a positive alignment factor. But I have no book value or debt/equity data, so my margin of safety is reduced. At ₹28, the shares are far below the 52-week high of ₹99.50. The P/E of 27.77 is demanding when profit growth is only 1.57%. The PEG ratio of 0.21 only makes sense if you assume a huge acceleration in earnings; I see no evidence of that yet. There is no dividend to compensate me while I wait. This is a fast grower in sales, but not yet in owner earnings. If margins can expand even to 5%, the economics change completely. Until I see profit follow revenue, I would keep this on my watch list, not in my portfolio.

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