Foce India (FOCE)
CyclicalFairStock Score: 32/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹554.5 |
| Market Cap | ₹854.79 Cr |
| P/E Ratio | 64.03 |
| ROCE | 19.06% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | -15.31% |
| Debt/Equity | — |
| Sales Growth | 71.81% |
| Promoter Holding | 73.63% |
| 52-Week Range | ₹487 — ₹764 |
| Sector | Consumer Durables |
Strengths
- Strong promoter holding of 73.63%, aligning interests with minority shareholders.
- Impressive sales growth of 71.81%, indicating robust demand or expansion.
- ROCE of 19.06% suggests efficient capital allocation relative to capital employed.
- PEG of 0.89 could become attractive if profit growth turns positive and sustains.
Concerns
- Very high P/E of 64.03 despite a 15.31% profit decline – earnings quality is weak.
- Piotroski F-Score of 4/9 points to poor fundamental health and rising red flags.
- Zero dividend yield – no return to shareholders while trading at a premium.
- Latest quarter margin thin – ₹6 crore profit on ₹59 crore sales indicates pricing or cost pressures.
AI Analysis
Let me start with what I see: Foce India sells at ₹554.50, a market cap of ₹855 crore, and a P/E of 64. That is a rich price for a business whose profit actually fell 15.31% last year. Sales grew 71.81%, but profits went backwards – that tells me the company is buying growth, or facing severe margin pressure. In the latest quarter, net profit was just ₹6 crore on sales of ₹59 crore, a margin of roughly 10%, which is thin for a jewellery business. The ROCE of 19.06% is respectable, but with no book value disclosed and no dividend, I struggle to find a margin of safety. The Piotroski F-Score of 4 out of 9 is a red flag – it suggests deteriorating financial health despite the topline surge. The PEG ratio of 0.89 looks tempting only if you believe the profit decline is temporary and high growth will resume. But I do not pay 64 times earnings for a story that is not yet proven. Promoter holding of 73.63% is good – skin in the game – but that does not justify overpaying. This is a cyclical jewellery business, subject to gold prices, consumer sentiment, and working capital cycles. The 52-week range of ₹490 to ₹764 shows the market itself is unsure. As Graham would say, price is what you pay, value is what you get. At this price, I am not getting enough value. I would wait for a lower price or clear proof of profit recovery before acting.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer