Felix Industries (FELIX)

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

Key Financials

Strengths

• Sales growth of 242.46% and latest quarter net margin of 18.5% show strong demand and current profitability.
• Piotroski F-score of 7/9 suggests improving financial health across several fundamental checks.
• ROCE of 14.31% is acceptable for a capital-intensive water infrastructure business.
• Promoter holding of 50.78% aligns promoter interests with minority shareholders.
• PEG of 0.14 indicates the market is pricing in very high earnings growth at a seemingly low multiple if that growth persists.

Concerns

• P/E of 19.18 for a small-cap with zero dividend offers little margin of safety.
• Book value, ROE, and debt/equity are unavailable, leaving financial leverage and return on equity unverified.
• Profit growth of 41.01% is much lower than sales growth of 242.46%, raising doubts about earnings quality and scalability.
• Stock is near its 52-week high of ₹232.95, so much of the optimism may already be in the price.

AI Analysis

Felix Industries is a small water management company with a striking growth curve. Sales up 242.46% and latest quarter net profit of ₹5 Cr on ₹27 Cr revenue points to a healthy 18.5% margin. At ₹215.05, the market cap is ₹332 Cr and the P/E is 19.18. That is a reasonable but not bargain price for a small-cap. Graham would remind me that book value, ROE, and debt-to-equity are missing; without those I cannot assess capital efficiency or financial risk. ROCE of 14.31% is decent, and the Piotroski F-score of 7 out of 9 suggests improving fundamentals. But this is not a wide-moat franchise I would buy with confidence. The PEG of 0.14 looks spectacular, but it implies very steep expected earnings growth; reported profit growth is 41.01%, so I treat that ratio with caution. Profit growth also lags sales growth by a huge margin, meaning revenue is scaling faster than profits. That could be rising costs, pricing pressure, or one-time contract work. I do not know. There is no dividend, so every rupee must be reinvested at attractive rates, and I do not yet see proof of that. The stock trades near the 52-week high of ₹232.95, so market optimism is already high. As a small-cap, until the balance sheet and cash flow are clear, this is more speculation than investment. Promoter holding of 50.78% is a positive, aligning interests to some extent, but I still need visibility on how growth is financed and whether it is repeatable. I would keep Felix Industries on a watch list, but I would not commit capital based on this limited evidence. In Buffett's terms, I need a wonderful business, wonderful management, and a sensible price. Here, I have only a few promising figures.

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