Eppeltone Ene. (EEPL)

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

Key Financials

Strengths

• P/E of 14.44 with ROCE of 32.04% indicates efficient capital use.
• Profit growth of 55.33% and PEG of 0.26 suggest strong earnings momentum.
• Promoter holding of 61.78% aligns majority owners with minority investors.
• Latest quarter net margin is about 13% (₹6 Cr profit on ₹46 Cr sales), showing operational recovery.
• Piotroski F-Score of 6/9 points to acceptable financial fundamentals.

Concerns

• Sales decline of 7.75% while profit rises raises sustainability questions.
• No dividend means zero income yield for shareholders.
• Insufficient data: book value, ROE, and debt/equity are not disclosed, limiting balance sheet analysis.
• Small cap of ₹194 Cr with a wide 52-week range (₹91-₹170) indicates potential volatility and illiquidity.

AI Analysis

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.

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