Guj Apollo Inds (GUJAPOLLO)

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

Key Financials

Strengths

• Low debt-to-equity of 0.09 provides balance sheet stability
• Sales growth of 159.55% shows recent top-line momentum
• Promoter holding of 47.30% gives some ownership alignment
• Positive net profit of ₹1 crore in the latest quarter indicates it is not loss-making
• Book value of ₹175.60 provides a tangible asset base

Concerns

• P/E of 0.00 reflects collapsed or negligible trailing earnings
• Profit growth fell 72.96% despite 159.55% sales growth, indicating poor conversion
• ROE of 0.03% and ROCE of 1.31% are far below acceptable returns on capital
• Price of ₹416.50 is 2.37 times book value for a business earning almost nothing

AI Analysis

When I look at a company, I first ask: what is the underlying earning power, and am I paying a sensible price for it? Here I find a small industrial products company with a ₹485 crore market cap, but the P/E is quoted as 0.00—that tells me trailing earnings are essentially nonexistent. Profit growth has collapsed by 72.96%, while sales grew 159.55%. That combination is a red flag. A sales jump that does not reach the bottom line suggests weak pricing power, poor cost control, or low-quality revenue. Return on equity is 0.03%, and ROCE is just 1.31%. As a shareholder, I am not being compensated for my capital one bit. The latest quarter shows ₹16 crore revenue and ₹1 crore net profit—a thin 6% margin, and if annualized, the stock still trades at a ridiculous earnings multiple. Book value is ₹175.60, and the price is ₹416.50, so I am paying 2.37 times book for a business earning almost nothing. Graham would call that speculation, not investment. The balance sheet has one virtue: debt-to-equity is only 0.09, so the company is not going to break anytime soon. Promoter holding at 47.30% is decent, but it doesn't cure the economics. The Piotroski F-score of 4/9 confirms weak financial health. This looks like a cyclical industrial business caught in a strange moment—sales up, profits down. In a cycle, today's numbers can change, but I need evidence of durable earning power. I would rather wait for a far lower price or a sustained margin recovery before calling this an attractive investment.

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