Galaxy Surfact. (GALAXYSURF)
CyclicalFairStock Score: 43/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,508.4 |
| Market Cap | ₹8,893.47 Cr |
| P/E Ratio | 33.33 |
| ROCE | 16.22% |
| ROE | 10.64% |
| Dividend Yield | 0.88% |
| Profit Growth | 108.1% |
| Debt/Equity | 0.09 |
| Sales Growth | 39.4% |
| Promoter Holding | 70.91% |
| 52-Week Range | ₹1,510 — ₹2,659.35 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹774.18 |
Strengths
- Very low leverage with Debt/Equity of 0.11, providing financial stability.
- High promoter holding of 70.91%, aligning management and minority shareholders.
- Strong sales growth of 27.63%, indicating healthy demand and market share expansion.
- Piotroski F-Score of 7/9 suggests solid overall operational health.
- ROCE of 16.22% reflects acceptable capital efficiency above the company's financial cost.
Concerns
- Profit growth of only 6.11% severely lags sales growth of 27.63%, pointing to margin compression.
- Latest quarterly net margin is thin at ~4.4% (₹59 Cr profit on ₹1,329 Cr sales).
- ROE of 10.64% is modest; paying 4.42 times book value for such returns leaves little room for error.
- At a P/E of 23.96 and PEG of 1.42, valuation appears expensive relative to the current earnings pace.
AI Analysis
If I buy a business, I want it to be both sound and sensibly priced. Galaxy Surfactants has some admiral traits: a debt-to-equity ratio of only 0.11, promoters holding 70.91%, and a Piotroski score of 7/9. That tells me the balance sheet is safe and owners are aligned with public shareholders. But Graham taught me that price is part of the investment. At ₹1,797.20, I am paying 23.96 times earnings and 4.42 times book value for a company earning 10.64% on equity. That is not cheap. The sales growth of 27.63% is impressive, yet profit growth is only 6.11% — a glaring divergence. The latest quarter's net profit of ₹59 Cr on sales of ₹1,329 Cr implies a net margin of roughly 4.4%, which is thin and suggests margin pressure. ROCE of 16.22% is decent, but it is not a spectacular moat. The stock has fallen from its 52-week high of ₹2,505.60, and FairStock's 40/100 mixed score echoes my caution. Graham would say the margin of safety is missing here. I would wait for either a lower price or clear evidence that earnings begin growing in line with sales. Until then, this is a decent business, but not a compelling investment at today's valuation.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer