Ducon Tech (DUCON)
Asset PlayScore breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3.09 |
| Market Cap | ₹100.4 Cr |
| P/E Ratio | 9.09 |
| ROCE | 12.25% |
| ROE | 10.11% |
| Dividend Yield | 0% |
| Profit Growth | -54.01% |
| Debt/Equity | 1.39 |
| Sales Growth | -9.22% |
| Promoter Holding | 38.08% |
| 52-Week Range | ₹1.73 — ₹6.45 |
| Sector | Industrial Manufacturing |
| Book Value | ₹7.45 |
Strengths
- Price-to-book of 0.66 offers a margin of safety against stated book value of ₹5.03.
- P/E of 8.44 is optically low relative to trailing earnings.
- ROCE of 12.25% is respectable for an industrial products company.
- Latest quarter is still profitable, with ₹2 crore net profit on ₹94 crore sales.
Concerns
- Sales declined 16.31% and profit declined 32.26%, indicating weakening operations.
- ROE of only 2.87% signals poor returns for shareholders.
- Debt-to-equity of 1.39 is high for a business with shrinking earnings.
- Piotroski F-Score of 3/9 suggests deteriorating financial health.
AI Analysis
I am often reminded that price is what you pay, value is what you get. Ducon Tech looks superficially cheap at ₹3.34, with a P/E of 8.44 and a P/B of 0.66 against book value of ₹5.03. But cheapness without a good business is a trap. This is an industrial products company with no clear moat. Sales have fallen by 16.31% and profits by 32.26%; the latest quarter earned only ₹2 crore on sales of ₹94 crore, a thin margin. Return on equity is a paltry 2.87%, far below what I would demand from a quality business. The Piotroski F-Score of 3 out of 9 confirms my suspicion—the fundamental condition is weak and deteriorating. Debt-to-equity of 1.39 is uncomfortable for a business whose earnings are shrinking. There is no dividend, so I am not being paid to wait. The book value cushion offers some theoretical support, but assets are only worth what they can earn. A low P/B only matters if the assets are productive and the balance sheet is solid. With promoter holding at 38.08%, outside investors have limited control. I do not see a wonderful business here. It may be a statistical bargain, but the lack of growth, poor returns, and leverage make it a speculative asset play, not a compounding machine. I would require concrete evidence of a turnaround—stabilized sales, improving margins, lower debt, and rising return on capital—before acting. Until then, I would rather pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer