Goyal Aluminiums (GOYALALUM)
Slow GrowerScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹6.51 |
| Market Cap | ₹92.92 Cr |
| P/E Ratio | 29.59 |
| ROCE | 10.7% |
| ROE | 12.94% |
| Dividend Yield | 0% |
| Profit Growth | 1,299.9% |
| Debt/Equity | 0.42 |
| Sales Growth | 80.9% |
| Promoter Holding | 69.94% |
| 52-Week Range | ₹5.34 — ₹11.37 |
| Sector | Commercial Services & Supplies |
| Book Value | ₹1.76 |
Strengths
- Very low leverage: debt/equity is only 0.06, limiting financial risk.
- High promoter holding of 69.94% aligns insiders with minority shareholders.
- ROCE of 10.70% is positive and suggests the trading operation still earns some return on capital employed.
Concerns
- Latest quarter net profit is ₹0 Cr; profitability has effectively vanished.
- Sales growth is down 14.25% and profit growth down 51.11%, showing severe negative momentum.
- P/E of 38.61 and P/B of 4.78 leave no margin of safety, especially with ROE of only 6.84%.
- Piotroski F-score of 3/9 and zero dividend yield weaken the investment case further.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer