Epigral (EPIGRAL)

FairStock Score: 45/100 — MIXED

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

Key Financials

Strengths

• High historical ROE of 24.13% and ROCE of 24.88%
• Low debt-to-equity of 0.26 provides financial cushion
• Strong promoter holding of 68.83% aligns management with minority shareholders
• Headline P/E of 11.39 appears modest if prior earnings are considered

Concerns

• Profit growth collapsed 62.19%, with latest quarterly net profit only ₹39 Cr on ₹597 Cr sales
• Piotroski F-Score of 3/9 signals deteriorating financial health
• P/B of 3.71 is expensive relative to book value, especially with earnings declining
• Sales growth is negative at -7.46%, and FairStock Score is 26/100 (RISKY)

AI Analysis

At first glance, Epigral looks like a business I would want to study. A 24.13% return on equity and 24.88% ROCE are well above what most Indian manufacturers earn, and with debt only 0.26 times equity, the balance sheet is not a worry. But Ben Graham taught me that value must survive calculation, not just hope. This stock is down from ₹1,911.60 to ₹1,192.45, and the market is signalling trouble. Profit growth has fallen 62.19%; sales are down 7.46%. The latest quarter produced just ₹39 Cr net profit on ₹597 Cr sales, which is a thin margin. The headline P/E of 11.39 rests on past, fading earnings; if I annualize the latest quarter, the earnings power is far more expensive than that. With book value at ₹321.22, I would be paying 3.71 times book for a business whose returns are declining. The Piotroski F-Score of 3 out of 9 is a clear red flag that working capital and operating efficiency are deteriorating. FairStock scores it 26/100 — risky, and I agree. On the positive side, promoter holding at 68.83% aligns interests, and low debt gives room to survive. But survival is not investment return. As Graham said, price is what you pay, value is what you get. Right now I do not see enough evidence of stabilisation to call this value. This looks like a cyclical business in the down part of its earnings cycle, if not something structurally impaired. I would wait, watch the next few quarterly numbers, and only invest if the profit decline reverses and return on capital stays high. The margin of safety is not yet sufficient.

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