Goyal Aluminiums (GOYALALUM)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I start with a simple test: can I understand the business, and does it earn a dependable return on capital? Goyal Aluminiums is a small Indian trading and distribution company with a market cap of ₹98 Cr. I can understand the business, but I cannot see a durable moat. Trading commodities is a low-margin, high-competition game; price-takers rarely build lasting wealth. The numbers reinforce this. Sales have fallen 14.25%, profit is down 51.11%, and the latest quarter shows ₹17 Cr of sales with net profit of ₹0 Cr. That is breakeven, not a wonderful enterprise. ROE is only 6.84%, and ROCE is 10.70%; for a P/B of 4.78, I expect much higher returns on equity. Graham would never pay 4.78 times book for a 6.84% earner. At ₹6.98, the trailing P/E is 38.61, but with earnings collapsing, that multiple is deceptive. A Piotroski F-score of 3/9 also signals financial strain. The balance sheet is clean, with debt/equity of 0.06, and promoters hold 69.94%, which is good. But there is no dividend, so the small shareholder gets no cash return while waiting. This is a slow grower at best, and at this price there is no margin of safety. I would rather watch and wait than invest. As Graham said, price is what you pay, value is what you get. Here, the value is far from obvious.

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