Gillanders Arbut (GILLANDERS)

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

Key Financials

Strengths

• Discount to book value: P/B of 0.76 with book value ₹120.77 against price ₹92
• Promoter holding of 69.05% aligns majority ownership with minority investors
• Moderate valuation with P/E of 12.76
• Piotroski F-Score of 6/9 suggests some fundamental improvement
• Debt/equity of 0.58 is manageable

Concerns

• Very low ROE of 1.22% and weak ROCE of 6.80%
• Sales growth is negative at -16.30%, showing a contracting top line
• Profit growth of 65.69% comes on a falling revenue base and may not be sustainable
• No dividend yield at 0.00%, so shareholders receive no cash return

AI Analysis

Let me first say what this is not: a wonderful business. Tea and coffee are commodity products; buyers do not pay a premium for a name, and sellers rarely control price. With ROE of just 1.22% and ROCE of 6.80%, Gillanders Arbut is earning a poor return on the capital it employs. A shareholder should demand far more. The stock at ₹92 is cheaper than book value of ₹120.77, so a Graham-type investor might feel some asset protection. But assets are only worth what they can produce in cash, and right now they are not producing much. Sales fell 16.30% — a serious signal. The reported profit growth of 65.69% looks exciting, but it comes with a falling top line; it may be cost cutting, a low base, or a one-time gain. Latest quarter's net profit of ₹5 Cr on sales of ₹107 Cr is a thin margin. I would not use the PEG ratio of 0.19 — a PEG based on one year's rebound from a poor base is dangerous. On the positive side, P/E of 12.76 is not demanding, and debt/equity of 0.58 is manageable, though I would prefer less. Promoter holding of 69.05% is good alignment. The Piotroski score of 6/9 hints at some improvement. But there is zero dividend, which never pleases a shareholder who wants cash returns. This has the look of a possible turnaround rather than a durable grower. If it cannot improve ROE and revive sales, the discount to book could persist or widen. I would keep position small, watch quarterly numbers, and demand evidence of margin stability and debt reduction before calling it a strong value idea.

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