Federal-Mogul Go (FMGOETZE)

FairStock Score: 42/100 — MIXED

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

Key Financials

Strengths

• Zero debt with Debt/Equity of 0.00 provides strong balance sheet resilience.
• ROE of 16.08% and ROCE of 19.60% indicate capital-efficient operations.
• Sales growth of 14.45% and profit growth of 31.48% show momentum and operating leverage.
• Promoter holding of 74.98% aligns management interests with minority shareholders.
• Piotroski F-Score of 7/9 points to solid financial health.

Concerns

• No dividend yield; shareholders depend entirely on share price appreciation.
• Latest quarterly net margin is only about 6.25% (₹31 Cr profit on ₹496 Cr sales), leaving a thin cushion.
• Auto components are cyclical, and the stock is 24% below its 52-week high, showing market uncertainty.
• Price-to-book of 2.19 means it is not an asset bargain, and the FairStock Score of 54/100 is mixed.

AI Analysis

Let me look at Federal-Mogul Go as a business, not a ticker. I see an auto component company trading at ₹437.50, market cap ₹2,265 crore, P/E under 12 with earnings expanding at 31.5%. That is interesting. Graham would ask: are we paying too much? At 11.93 times earnings and 2.19 times book, with a 16% ROE and 19.6% ROCE, the price is reasonable for a business that has grown sales 14.45% and profits even faster. Zero debt is a huge comfort. Financial strength allows a company to survive rough patches, and the auto component industry is never smooth. Promoters own 74.98%; skin in the game matters. The Piotroski score of 7/9 indicates solid fundamentals, not a house of cards. The PEG ratio of 0.52 suggests the market is not fully paying for growth. But I must not be complacent. Dividend yield is zero; while reinvesting is fine, shareholders deserve visible capital allocation. Latest quarter margin is modest: ₹31 crore profit on ₹496 crore sales, about 6.25%. That exposes earnings to cost inflation or price pressure. Also, the stock is 24% below its 52-week high, and FairStock's 54/100 mixed score reminds me to discipline. I would not call this a wonderful company at a wonderful price with certainty; it may be a good business at a fair price. The main need is to monitor whether profit growth continues to outpace sales growth through operating leverage, and whether the no-debt balance sheet remains intact. If the auto cycle turns, low leverage helps, but profits could decline. I would wait for margin of safety, perhaps a lower price or stronger evidence of durable demand.

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