Elin Electronics (ELIN)
TurnaroundFairStock Score: 24/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹101.55 |
| Market Cap | ₹504.8 Cr |
| P/E Ratio | 21.89 |
| ROCE | 6.97% |
| ROE | 7.09% |
| Dividend Yield | 0% |
| Profit Growth | -324.26% |
| Debt/Equity | 0.03 |
| Sales Growth | -7.01% |
| Promoter Holding | 32.98% |
| 52-Week Range | ₹89.95 — ₹234 |
| Sector | Consumer Durables |
| Book Value | ₹116.7 |
Strengths
- Clean balance sheet with debt-to-equity of only 0.03
- Piotroski F-score of 7/9 indicates improving fundamentals
- Reasonable valuation at P/E of 15.49 and P/B of 1.39
- Positive sales growth of 10.21% shows business is expanding
Concerns
- ROE of 7.09% and ROCE of 6.97% are weak, suggesting poor capital efficiency
- Latest quarterly net profit of ₹4 Cr on ₹294 Cr sales shows very thin margins
- Zero dividend yield and promoter holding of only 32.98% are unappealing
- Stock has fallen sharply from ₹234 high, reflecting volatility and uncertainty
AI Analysis
When I look at Elin Electronics, I ask myself whether this is the kind of simple, enduring business I can understand and whether the economics are truly good. The balance sheet is decent: debt-to-equity of 0.03 gives me comfort, and book value of ₹91.61 means at ₹127.45 I am paying only 1.39 times book. But the earnings power tells a more cautious story. Return on equity is just 7.09% and ROCE is 6.97% — these are not numbers that indicate a wonderful franchise. The 210.71% profit growth looks eye-catching, but I must be careful: the latest quarter shows net profit of only ₹4 crore on sales of ₹294 crore, which is a razor-thin margin. A low base can make percentage growth look spectacular without creating real shareholder value. Sales growth of 10.21% is respectable, but not exceptional. The Piotroski score of 7/9 suggests improving fundamentals, and with almost no debt, the company is not in any danger. Still, zero dividend and promoter holding of only 32.98% make me uneasy; I prefer owners who are deeply invested and who return cash to shareholders when opportunities are limited. The stock is down sharply from its 52-week high of ₹234, trading near ₹127, which could be value or could be a trap. The PEG of 0.14 relies on a profit growth rate that I doubt is sustainable. This looks more like a turnaround situation than a compounder. I want to see several quarters of expanding margins and higher returns on capital before I put a meaningful amount of money to work.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer