Hardwyn India (HARDWYN)
TurnaroundFairStock Score: 14/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹11.33 |
| Market Cap | ₹774.74 Cr |
| P/E Ratio | 59.63 |
| ROCE | 4.23% |
| ROE | 3.26% |
| Dividend Yield | 0% |
| Profit Growth | 74.8% |
| Debt/Equity | 0.02 |
| Sales Growth | 25.2% |
| Promoter Holding | 43.77% |
| 52-Week Range | ₹8.51 — ₹27.99 |
| Sector | Consumer Durables |
| Book Value | ₹5.92 |
Strengths
- Debt/equity of only 0.02 gives financial stability.
- Sales growth of 5.80% shows top-line activity remains positive.
- Latest quarter delivered a net profit of ₹2 crore on ₹49 crore sales, avoiding a loss.
- Promoter holding of 43.77% aligns company insiders with shareholders.
Concerns
- P/E of 72.99 and PEG of 12.58 are extremely expensive given shrinking profit growth of -55.14%.
- ROE of 2.85% and ROCE of 4.23% signal poor capital efficiency.
- Piotroski F-Score of 4/9 points to weak overall financial health.
- Zero dividend yield means shareholders get no income while waiting for uncertain growth.
AI Analysis
At ₹25.56, Hardwyn India carries a market cap of ₹849 crore and a P/E of 72.99. That means the market is paying more than 72 years of current earnings for a business whose profit has collapsed by 55.14%. Benjamin Graham taught me that a high price is only acceptable when backed by strong and growing earnings. Here we have the opposite: sales growth of 5.80% but a severe profit decline. ROE is just 2.85% and ROCE 4.23%, so every rupee of retained capital is earning far less than a conservative investor can get from a bank fixed deposit. With book value at ₹7.88, paying ₹25.56 means a price-to-book of 3.24 for a business earning less than 3% on that book. The Piotroski F-Score of 4/9 and a PEG ratio of 12.58 reinforce my discomfort. Low debt is a genuine positive — debt/equity of 0.02 means the balance sheet is not stressed. The latest quarter did earn a small net profit of ₹2 crore on sales of ₹49 crore, so it is not a burning factory. But I see no durable moat in furniture and home furnishing; competition is intense and brands often lack pricing power. With no dividend yield, investors are depending entirely on capital gains. Given the stock trades near its 52-week high of ₹27.99 while profits are declining, the margin of safety is absent. If Hardwyn were a wonderful business, I might tolerate a high multiple. But a 72.99 P/E with declining profitability and 4/9 Piotroski is a trap for impatient capital. I would wait for a far lower price or clear proof of a sustained earnings turnaround before examining it further.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer