Electro Force (EFORCE)

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

Key Financials

Strengths

• Promoter holding of 62.89% aligns management interests with minority shareholders.
• Latest quarter is profitable: ₹10 Cr sales with ₹1 Cr net profit, a 10% net margin.
• Piotroski F-Score of 6/9 suggests a moderately healthy financial position.
• Reported profit growth of 760% shows some earnings momentum, though from a low base.

Concerns

• Sales declined 38.64%, showing severe top-line weakness.
• P/E of 30.97 is expensive for a company with falling revenues and no clear moat.
• ROCE of only 2.77% signals poor returns on capital employed.
• Book value, ROE, and debt/equity are absent, making balance-sheet risk impossible to assess; no dividend is paid.

AI Analysis

At first glance, Electro Force is exactly the sort of small, thinly covered company that Graham warned must be examined with extra care. The market cap is only ₹63 Cr, and I have no book value, no ROE, and no debt-equity figure. That alone breaks my first rule: know what you are buying. Even the FairStock Score says INSUFFICIENT_DATA, and I agree. What I do see is not encouraging. Sales are down 38.64%, while the P/E stands at 30.97. A 760% profit rise sounds spectacular, but with latest quarter net profit of just ₹1 Cr on ₹10 Cr sales, it is earnings from a very low base. I cannot infer a durable competitive advantage from this. The business earns only 2.77% on capital employed — far below what a passive owner could expect, and with no dividend, I am not being paid to wait. The Piotroski score of 6/9 is respectable, and 62.89% promoter holding does align interests, but these are not moats. The PEG ratio of 0.04 is a trap: it divides a trailing P/E by a single explosive profit growth number that contradicts the collapsing sales trend. In Graham's language, this is speculation, not investment. At ₹28.05, the stock trades well off its 52-week low of ₹16.15, but valuation still offers no margin of safety given sub-3% ROCE and negative sales momentum. I would need several quarters of rising sales and stable profits, plus full balance-sheet disclosure, before I could calculate intrinsic value. Until then, this stays on my watchlist, not in my portfolio.

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