Delta Auto. (DELTIC)

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

Key Financials

Strengths

• P/E of 6.50 and PEG of 0.23 offer a low valuation relative to the 36.61% sales growth and 20.98% profit growth.
• Promoter holding of 71% aligns majority-owner interests with public shareholders.
• ROCE of 23.37% suggests strong capital efficiency.
• Piotroski F-Score of 7/9 indicates good recent financial health.
• Latest quarter had ₹42 Cr sales and ₹3 Cr net profit, supporting the growth narrative.

Concerns

• Profit growth of 20.98% is significantly lower than sales growth of 36.61%, hinting at margin compression or rising costs.
• Zero dividend yield means shareholders get no income while waiting for growth.
• Book value, ROE and debt/equity are unavailable, so balance-sheet risk and Graham-style asset protection cannot be assessed.
• At ₹48.30, the price is only about 12% below the 52-week high of ₹54.80, and the ₹61 Cr market cap makes it a microcap with limited margin of safety.

AI Analysis

Let me look at Delta Auto the way Graham and I would—starting with the numbers. At ₹48.30, the market caps the company at ₹61 Cr. A P/E of 6.50 is cheap, and with sales growing 36.61%, the PEG ratio of 0.23 screams bargain—if the growth is real. The latest quarter supports some momentum: ₹42 Cr sales and ₹3 Cr net profit. ROCE of 23.37% is exactly the kind of return on capital I like to see. A Piotroski F-score of 7/9 also says the company is not financially deteriorating. Promoter holding of 71% means the people running it own it, which aligns interests with minority shareholders. But I have to be honest: I cannot see a moat from these figures. Two/three wheelers is a competitive, cyclical business in India, and a ₹61 Cr microcap is unlikely to have pricing power. Profit growth of 20.98% lags sales growth of 36.61%, which tells me margins are being squeezed or costs are rising faster. There is no dividend, so I depend entirely on capital appreciation. Also, with book value, ROE and debt/equity not disclosed, I cannot compute Graham's asset-value protection or know how leveraged the balance sheet is. The stock is ₹48.30, just below the 52-week high of ₹54.80, so I am not buying at distressed prices. This is a fast grower, not a cigar-butt; if growth slows, a 6.5 P/E can become a value trap. I would need to see several more quarters of high sales and profit, no debt build-up, and improving margins before calling it a compounder. For now, it passes the cheap-and-growing screen, but I would keep a close watch on execution.

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