Crizac (CRIZAC)

FairStock Score: 45/100 — MIXED

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

Key Financials

Strengths

• Zero debt with ROCE of 47.98% shows exceptional capital efficiency.
• Sales growth of 28.01% and latest quarter ₹279 Cr sales / ₹51 Cr profit indicate expanding business activity.
• Promoter holding of 79.94% aligns management interests with minority investors.
• Piotroski F-Score of 7/9 and 3.45% dividend yield reflect financial health and shareholder friendliness.

Concerns

• Profit growth of 15.36% lags sales growth of 28.01%, hinting at margin pressure or heavy reinvestment.
• P/E of 20.88 and P/B of 6.41 against book value of ₹34.26 leave limited margin of safety.
• Price is more than 43% below the 52-week high of ₹387.95, highlighting volatility.

AI Analysis

Let's begin with what I like. Crizac earns a striking 48% ROCE, carries zero debt, and even pays a 3.45% dividend. For a business in internet and catalogue retail, that is unusual financial discipline. Promoter holding of 79.94% aligns interests with minority shareholders, and a Piotroski F-score of 7/9 confirms a healthy, not manipulated, balance sheet. Sales grew 28.01%, and in the latest quarter the company delivered ₹279 Cr of revenue and ₹51 Cr of net profit. At ₹219.55, the stock trades at a P/E of 20.88 times earnings and 6.41 times book value of ₹34.26. A PEG of 0.96 suggests the market is pricing in growth, not overpaying dramatically—if that growth is durable. But I remain cautious. Profit growth of 15.36% trails sales growth by a wide margin. That tells me the company is either spending heavily to expand or facing margin compression. In retail, success invites competition, so that gap must be watched. The share price has swung between ₹173.35 and ₹387.95 over 52 weeks; such volatility is not for those who cannot tolerate mark-to-market noise. Graham would ask for a margin of safety. At 20.88 times earnings, I get some comfort from the zero-debt balance sheet and 3.45% dividend yield, but not enough to call this a bargain. I would not chase it. The quality is real: high returns on capital, prudent financing, and good growth. The question is whether the profit engine catches up with revenue growth. If it does, this could be a wonderful compounder. If not, the premium valuation will shrink. I will keep it on my watch list and wait for either a better price or clear evidence that profitability is improving.

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