Ganga Bath Fitt. (GANGABATH)

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

Key Financials

Strengths

• Promoter holding is high at 69.16%, aligning management with minority shareholders
• ROCE of 27.58% indicates historically efficient use of capital
• Sales growth is still positive at 2.26%, showing demand has not collapsed completely
• Market cap of ₹37 crore with low absolute scale leaves room for eventual growth if earnings recover

Concerns

• Profit growth has collapsed by 84.40%, and latest quarterly net profit is effectively ₹0 crore
• P/E of 24.46 and PEG of 10.82 are expensive given the severe earnings deterioration
• Piotroski F-Score of 4/9 indicates weak financial health
• No dividend and missing book value, ROE, and debt/equity data limit proper valuation

AI Analysis

At ₹24.50, Ganga Bath Fitt has a market cap of just ₹37 crore. In the sanitary ware business, branding and distribution matter, but I see no durable moat here; it's a commodity-like product competing with larger players. The financial scorecard raises red flags. Sales growth is only 2.26%, while profit growth has collapsed by 84.40%. The latest quarter shows sales of ₹17 crore but net profit of roughly ₹0 crore. That means the company is barely earning anything at the bottom line. Valuing it at a P/E of 24.46 on this depressed earnings power makes little sense; a PEG of 10.82 is far beyond any reasonable growth-adjusted value. I like that promoters hold 69.16%, showing their interests are tied to minority shareholders, and ROCE at 27.58% suggests the capital base was used efficiently in the past. But this is backward-looking. The Piotroski F-score of 4 out of 9 signals financial deterioration, not improvement. There is no dividend to compensate patient shareholders, and book value, debt/equity and ROE data are missing, so I cannot assess the balance sheet. At the price near the top of its 52-week range (₹15.50-₹25.45), Mr. Market is paying up for a company whose earnings have fallen off a cliff. Graham would demand a margin of safety; here the safety is absent. I need evidence that net profit can recover and that operational efficiency translates into cash flows. Until then, this is a pass. It may be a cyclical, but without a recovery in profitability, it's just an expensive small-cap.

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