Dhariwalcorp (DHARIWAL)

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

Key Financials

Strengths

• ROCE of 18.53% indicates efficient capital use
• Profit grew 15.30% even while sales dipped, showing margin expansion
• High promoter holding of 63.65% aligns management with minority shareholders
• Piotroski F-Score of 6/9 suggests acceptable financial health
• Latest quarter remains profitable with ₹3 Cr net profit on ₹119 Cr sales

Concerns

• P/E of 99.24 leaves almost no margin of safety
• Sales growth is negative at -1.34%, so top line is shrinking
• Zero dividend yield means investors rely solely on capital gains
• Net profit margin is thin at ~2.5% (₹3 Cr on ₹119 Cr quarterly sales)
• PEG of 6.49 suggests growth is far too slow for the valuation

AI Analysis

This business reminds me of a quote: 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' At ₹37.90, Dhariwalcorp carries a market cap of ₹393 Cr, yet earns only about ₹4 Cr annualized—hence a P/E of 99.24. That's a wonderful price for the seller, not for me. The company is a chemical trader, a business I struggle to call wonderful. Sales actually declined 1.34%, though profits rose 15.30%. That suggests better margins, but the latest quarter shows ₹119 Cr in sales and only ₹3 Cr net profit—a razor-thin 2.5% margin. With zero dividend, my only return comes from price, and at 99 times earnings, the magic of compounding has no room to work. On the plus side, ROCE of 18.53% shows management employs capital reasonably well, and promoter holding at 63.65% means they eat their own cooking. The Piotroski F-score of 6/9 hints at solid fundamentals, but not exceptional. I cannot see book value or debt, so my margin of safety is missing. PEG of 6.49 confirms the stock is priced for perfection, while sales shrink. In Graham's world, price is what you pay, value is what you get. Here, I'd be paying a premium for a cyclical trader with flat toppline and no dividend. I'd rather be early than late, but I won't be early at this price.

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