Latteys Industri (LATTEYS)

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

Key Financials

Strengths

• Sales growth of 95.05% and profit growth of 312.50% show strong momentum.
• Piotroski F-Score of 7/9 suggests improving financial health despite limited data.
• Promoter holding of 70.42% aligns management with minority shareholders.
• Debt/Equity of 0.37 is modest for an industrial small-cap.
• ROCE of 12.91% is positive and indicates some capital productivity.

Concerns

• Valuation is rich: P/E of 47.31 and P/B of 5.86 versus book value of ₹3.66.
• Latest quarter net profit margin is only about 2.94% (₹1 Cr on ₹34 Cr sales), leaving little room for error.
• Zero dividend yield means all returns depend on continued high growth.
• FairStock Score is N/A/INSUFFICIENT_DATA, and absolute profit is tiny at ₹1 Cr in the latest quarter.

AI Analysis

At ₹21.45, Latteys Industri is a ₹129 Cr small-cap. The figures shout growth: sales climbed 95.05% and profit jumped 312.50%. But Buffett would ask: what is the quality of that growth? The latest quarter tells a more cautious story: ₹34 Cr of sales produced only ₹1 Cr of net profit, a roughly 3% margin. That is thin, and it reminds me that revenue growth without durable margins may not build franchise value. This is a pumps and compressors business, and I don't see a wide moat from the numbers. A P/B of 5.86 against book value ₹3.66 means the market is paying almost six rupees per rupee of net assets. A P/E of 47.31 is expensive. The PEG of 0.23 only looks cheap if 312.50% profit growth is repeatable—and that seems unlikely. On the positive side, promoter holding is high at 70.42%, so interests are aligned. The Piotroski F-Score of 7/9 suggests recent financial improvements are real. Debt/equity of 0.37 is manageable, though ROCE of 12.91% is decent but not exceptional. With a zero dividend yield, the entire return depends on future growth. As Graham would say, price is what you pay, value is what you get. At this price, I need a multi-year track record and a demonstrated moat. Latteys is an interesting fast grower, but it is not a margin-of-safety stock yet.

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