Ganesh Consumer (GANESHCP)

FairStock Score: 46/100 — MIXED

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

Key Financials

Strengths

• ROCE of 18.97% indicates efficient capital allocation.
• Promoter holding of 64.08% aligns management interests with minority shareholders.
• Piotroski F-Score of 6/9 suggests financial health is not deteriorating.
• Dividend yield of 1.42% and debt/equity of 0.53 provide modest downside support.
• PEG of 0.34 based on reported profit growth could offer value if growth is sustainable.

Concerns

• Sales growth of -2.94% shows a shrinking top line; profit growth may be cost-led or one-off.
• P/E of 19.02 is not cheap for a company with negative revenue growth.
• Latest quarter net margin is thin at about 5.66% (₹12 Cr profit on ₹212 Cr sales).
• Price is well off its 52-week high of ₹309.95, reflecting market skepticism; ROE is not reported.

AI Analysis

Let me examine Ganesh Consumer with the same skepticism I'd bring to any packaged-foods business. A consumer staples company ought to show steady top-line growth. Instead, sales fell 2.94%, and while net profit jumped 56.21%, I must ask: where is that profit coming from? With latest quarter sales of ₹212 Cr and net profit of ₹12 Cr, the margin is only about 5.66% — thin and vulnerable. The reported PEG of 0.34 assumes the 56% profit growth continues; but negative revenue growth makes that assumption fragile. A 19.02 P/E is not cheap for a company whose sales are shrinking. On the positive side, ROCE at 18.97% is respectable, and debt/equity of 0.53 is manageable, although not debt-free. Piotroski F-score of 6/9 tells me the financials are not deteriorating, but it is hardly a ringing endorsement. Promoter holding of 64.08% is good; owners have skin in the game, and a 1.42% dividend yield provides some compensation while waiting. The book value of ₹100.66 gives a P/B of 1.89, so I am not buying assets at a discount. The 52-week range shows the price has fallen from ₹309.95 to ₹190; the market is questioning the story. In Buffett's framework, I want a business with pricing power and durable competitive advantages. I don't see clear evidence of a moat here. This looks more like a possible turnaround: margin recovery and cost discipline driving profit while sales lag. If management can stabilize and grow revenue, the leverage to profits could be real. Until then, I would keep this on my watchlist, not commit capital. I need proof that the profit growth is sustainable and not a one-off.

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