Gayatri Rubbers (GRCL)

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

Key Financials

Strengths

• ROCE of 31.91% shows exceptional return on capital employed.
• Sales growth of 26.91% and profit growth of 107.09% indicate strong momentum.
• Piotroski F-Score of 7/9 suggests solid financial health.
• Promoter holding of 74.03% aligns management interests with shareholders.
• Latest quarter net profit of ₹3 Cr on sales of ₹17 Cr implies a healthy margin.

Concerns

• P/E of 54.52 leaves little margin of safety for a small-cap.
• Zero dividend yield means returns depend entirely on future price appreciation.
• Book value, ROE, and debt/equity are unavailable, limiting balance-sheet analysis.
• Stock is about 43% below its 52-week high, which may signal deteriorating expectations.

AI Analysis

At first glance, Gayatri Rubbers looks like an exciting small-cap: sales grew 26.91%, profit jumped 107.09%, and the latest quarter delivered ₹17 Cr in sales with ₹3 Cr in net profit. ROCE of 31.91% is the kind of number that makes a value investor pause and read further. Promoter holding of 74.03% is also reassuring—owners have skin in the game. The Piotroski F-Score of 7/9 adds confidence to the financial health. But I am a buyer only when I can estimate value with a margin of safety. A P/E of 54.52 is steep. At ₹360, the market is paying a very rich price for current earnings, even though the PEG ratio of 0.81 suggests growth is doing the heavy lifting. The math: if the 107% profit growth normalizes even to a lower rate, the multiple compresses hard. Dividend yield is zero, so there is no cash return while I wait. I also worry about what I do not know. Book value, ROE, and debt/equity are unavailable. Graham insisted on a balance sheet, and this one is hidden. The stock at ₹360 is about 43% below its 52-week high of ₹629.20—that could be an opportunity, or it could be a warning that growth is slowing. For a small-cap with such high promoter holding, liquidity and governance deserve extra scrutiny. This is a fast grower, not a stalwart yet. I would need more data, sustained execution, and a lower price before committing real capital. For now, watch.

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