Eppeltone Ene. (EEPL)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹117.45, Eppeltone trades at 14.4 times earnings, a reasonable price for a company earning 32% on capital employed. But I first ask: what is the quality of the earnings? Sales have declined 7.75%, yet profit jumped 55.33%. That is a red flag. In my experience, when revenue falls and profit rises, the source is often cost-cutting, one-off gains, or favorable input prices—not durable business strength. The latest quarter shows ₹46 crore sales and ₹6 crore net profit, a 13% margin, which is unusually high for electrical equipment. I would want to see this margin sustained for several more quarters before trusting it. The positive side: promoter holding is 61.78%, so owners are aligned. ROCE of 32% is excellent, and the Piotroski score of 6 suggests decent financial health. The PEG of 0.26 looks cheap only if the 55% profit growth is repeatable; if sales keep falling, that growth will fade. There is no dividend, so shareholders depend entirely on capital appreciation and reinvested earnings. Graham would insist on a margin of safety. With no book value, debt/equity, or ROE disclosed, I cannot judge the balance sheet properly. A 52-week range of ₹91 to ₹170 shows volatility. The market cap is only ₹194 crore, making it a small cap that could be illiquid. I would not buy without understanding why sales are falling and whether the profit rise comes from operations or accounting. Let the figures prove themselves.

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