Ecoline Exim (ECOLINE)

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

Key Financials

Strengths

• Low trailing P/E of 14.13 with modest 6% growth provides a reasonable base case if earnings are stable.
• Latest quarter net profit of ₹13 Cr on ₹139 Cr sales implies a healthy 9.4% margin, worth studying for sustainability.
• Promoter holding of 74.57% aligns owner-managers with outside investors.
• Piotroski F-Score of 6/9 suggests acceptable financial health based on available data.

Concerns

• No dividend yield (0%) and negligible growth means total return depends entirely on capital appreciation; no margin of safety from income.
• ROCE shown as 0.00% and missing book value/debt/equity make it impossible to assess capital efficiency and leverage.
• PEG of 2.23 indicates that the market is paying more than the growth rate justifies; profit/sales growth of only ~6% is not exciting.
• Stock is down ~44% from 52-week high of ₹216 and trading near ₹111 low; need to know why market is skeptical.

AI Analysis

At ₹120, Ecoline Exim has a market cap of ₹277 Cr and a P/E of 14.13. The business is packaging, dull, the sort of industry I can understand, but dullness alone is not a moat. Sales and profit growth are both around 6%, so this is not a fast compounder. The latest quarter shows sales of ₹139 Cr and net profit of ₹13 Cr, a 9.4% margin, and that profit is large relative to the roughly ₹19.6 Cr trailing earnings the P/E implies. One strong quarter does not make an investment; I would want to see a full year of similar numbers before trusting the trajectory. The absence of book value, ROE, and debt/equity data bothers me. Graham always said to require adequate information. ROCE is shown as 0.00%, which is either a data error or a serious red flag; I cannot value a business without understanding return on capital. The F-score of 6/9 is acceptable, but not a clean bill of health. There is no dividend, so every rupee of retained earnings must earn a good return. Promoter holding at 74.57% is positive for alignment, though it also limits float and can hide governance issues. The stock is near its 52-week low of ₹111, after falling from ₹216. That 44% decline might be opportunity or message. With 6% growth, the PEG ratio is 2.23, so I am not paying for growth. However, on trailing earnings the P/E is 14.13, which is not excessive if balance sheet is solid. I need to see book value, debt, cash flow, and the reason for the fall before I can call this a Graham bargain. For now, it is a slow grower on my watchlist, not a purchase.

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