Goodluck India (GOODLUCK)
CyclicalFairStock Score: 36/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,324.7 |
| Market Cap | ₹4,403.1 Cr |
| P/E Ratio | 21.19 |
| ROCE | 15.1% |
| ROE | 14.75% |
| Dividend Yield | 0.53% |
| Profit Growth | 23.72% |
| Debt/Equity | 0.73 |
| Sales Growth | 23.19% |
| Promoter Holding | 56.45% |
| 52-Week Range | ₹437.4 — ₹1,672.75 |
| Sector | Industrial Products |
| Book Value | ₹497.44 |
Strengths
- ROE of 14.75% and ROCE of 15.10% show reasonable capital efficiency for an iron and steel products business.
- Promoter holding of 56.45% aligns management interests with minority shareholders.
- Piotroski F-Score of 7/9 indicates solid recent financial health and operational discipline.
- Sales growth of 10.10% shows demand exists despite the cyclical nature of the industry.
Concerns
- Valuation is rich: P/E of 23.27, P/B of 3.47, and PEG of 2.80 leave little margin of safety.
- Profit growth of 6.52% lags sales growth of 10.10%, signaling margin compression; latest quarter net margin is only about 4.2%.
- Dividend yield of 0.34% is negligible, offering almost no income support during downturns.
- FairStock Score of 25/100 flags the stock as risky.
AI Analysis
At ₹1,209, Goodluck India is priced for a very good business. I cannot say it is one. Its ROE is 14.75% and ROCE is 15.10% — respectable, but not special in a capital-intensive steel products industry. Sales grew 10.10%, yet profit rose only 6.52%. That tells me costs or pricing pressures are eating into returns. The latest quarter shows ₹44 Cr profit on ₹1,037 Cr sales, a thin net margin near 4.2%. A P/E of 23.27 and a P/B of 3.47 are not prices that invite me in. For a cyclical business, earnings can reverse; paying 23 times earnings is dangerous. Debt/equity of 0.70 is manageable, but not conservative. The dividend yield of 0.34% means I am paid almost nothing to wait. The Piotroski score of 7 suggests decent recent financial discipline, and promoter holding of 56.45% aligns interests. But the FairStock Score of 25/100 screams caution. Graham would ask: am I getting value? Book value is ₹348; I am being asked to pay 3.47 times that. PEG of 2.80 says growth is already more than priced in. Unless steel enters a long upcycle and margins expand, this is not a compounding machine at this price. I would rather wait for a lower price and a better margin of safety. Patience is a skill; no deal is necessary.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer