Gurunanak Agri. (GURUNANAK)
CyclicalScore breakdown: P/E: 3/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹32.7 |
| Market Cap | ₹37.8 Cr |
| P/E Ratio | 7.92 |
| ROCE | 55.48% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | -39.24% |
| Debt/Equity | — |
| Sales Growth | -34.45% |
| Promoter Holding | 68% |
| 52-Week Range | ₹22.45 — ₹49.2 |
| Sector | Agricultural, Commercial & Construction Vehicles |
Strengths
- High promoter holding of 68% aligns management with minority shareholders.
- ROCE of 55.48% suggests capital-efficient operations, if the current data is reliable.
- P/E of 7.92 gives a low apparent valuation.
- Latest quarter remains profitable: ₹2 Cr net profit on ₹16 Cr sales.
Concerns
- Sales down 34.45% and profits down 39.24% show deteriorating operating momentum.
- Piotroski F-Score of 3/9 signals weak financial health and rising red flags.
- Zero dividend yield means shareholders earn no income while waiting for a turnaround.
- Missing book value, ROE, and debt/equity data prevents a proper Graham-style margin-of-safety check.
AI Analysis
Let's look at Gurunanak Agri through a Graham-Buffett lens. A tractor company in India is by nature a cyclical business, tied to the fortunes of agriculture. The starting numbers are red flags: sales are down 34.45% and profits down 39.24%. That is not a franchise getting stronger; that is a business on the down escalator. At ₹32.70 the market cap is only ₹38 Cr, with a trailing P/E of 7.92. That low multiple can be a value trap if next year's earnings are lower. The latest quarter shows ₹16 Cr sales and ₹2 Cr profit, so the company is still profitable, and ROCE of 55.48% is eye-catching. But with book value and debt-to-equity not available, I cannot do the basic Graham calculation of downside protection. The Piotroski F-Score of 3/9 is a warning: the balance sheet and operating efficiency are deteriorating. Promoter holding of 68% is a positive; skin in the game matters, especially in a small-cap. But no dividend means the minority shareholder earns nothing while waiting. In a cyclical slowdown, low P/E often appears before the downturn ends. I would not rush to buy without seeing sales stabilize and better financial disclosure. If this were a business I understood well, I would need a much clearer margin of safety than the figures currently provide. I will wait for the cycle to turn and for reported fundamentals to improve.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer