DE Nora India (DENORA)

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

Key Financials

Strengths

• Strong recent momentum: sales growth of 104.10% and profit growth of 132.91%.
• Piotroski F-Score of 7/9 indicates reasonably solid recent financial health.
• No debt indicated, and promoter holding of 53.68% aligns majority owner interests.
• PEG of 0.24 shows the market may be pricing only a fraction of the current growth if it is sustainable.

Concerns

• ROCE is only 0.88%, suggesting the existing capital base is earning a very poor operating return.
• P/E of 28.67 and P/B of 3.57 offer little margin of safety, especially with zero dividend yield.
• Latest quarter annualises to only about ₹12 Cr net profit against a ₹374 Cr market cap, implying a thin ~3.2% earnings yield.
• Triple-digit growth may be cyclical or a one-off order spike; FairStock Score is N/A due to insufficient data.

AI Analysis

When I read DE Nora India, I try to strip away the excitement and ask what the numbers prove. Sales are up 104.10%, profits up 132.91%, and the PEG ratio of 0.24 looks tempting. But in an industrial niche like electrodes and refractories, triple-digit growth often signals a cyclical upswing, not a permanent new compounder. The latest quarter tells the scale: ₹36 Cr of sales and ₹3 Cr of net profit. Annualised, that is roughly ₹12 Cr of earnings against a ₹374 Cr market cap — about a 3.2% earnings yield. The stated P/E of 28.67 and P/B of 3.57 leave little margin of safety. Book value of ₹231.80 is fine, but ROE of 10.45% is middling, and ROCE of 0.88% is remarkably poor: this is not a business earning high returns on the capital it employs. With zero dividend, the shareholder receives no cash while waiting for the story to play out. I do admire the clean balance sheet — no debt indicated — and promoter holding of 53.68% is reassuring. The Piotroski F-Score of 7/9 says recent fundamentals are not deteriorating. But Graham would remind me that price is what you pay, value is what you get. At ₹828.15, the price already discounts continued high growth; if the cycle turns or the growth rate normalises, the valuation will compress. I would not buy today. I would wait for either a much better price or several years of evidence that this growth is durable and returns on capital improve.

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