Madhusudan Masa (MADHUSUDAN)

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

Key Financials

Strengths

• High profit growth of 104.35% with a low P/E of 11.05, giving a PEG of 0.18
• Promoter holding is strong at 69.53%, aligning management with minority shareholders
• Sales growing at 20.30%, showing business expansion
• F-score of 6/9 indicates reasonable financial fundamentals
• Stock is 40% below its 52-week high, offering a potential margin of safety if earnings hold

Concerns

• Critical financial ratios like ROE, ROCE, and debt-to-equity are not available or shown as zero, limiting fundamental analysis
• Profit growth far exceeds sales growth, raising questions about earnings quality and sustainability
• No dividend yield (0.00%), so investor returns depend entirely on stock appreciation
• Small market cap and competitive food sector may imply weak moat and volatility

AI Analysis

Looking at Madhusudan Masa, I see a small-cap food business trading at ₹154.75 with a market cap of just ₹199 Cr. The headline numbers are intriguing: a P/E of 11.05 and a profit growth of 104.35% last year. That gives a PEG of 0.18, which would normally make me sit up. But I must be careful—when a company grows profits four times faster than sales (sales are up 20.30%), I ask whether the quality of earnings is real or a one-time boost. The latest quarter shows sales of ₹76 Cr and net profit of ₹5 Cr, which annualizes to roughly ₹20 Cr against a ₹199 Cr market cap. That's not bad, but the picture is incomplete. I have no book value, no return on equity, no debt-to-equity ratio, and ROCE is listed as zero. As Graham would say, I don't invest in what I cannot measure. The F-score of 6 out of 9 is acceptable but not stellar. Promoter holding at 69.53% is a positive—owners have skin in the game. The stock sits 40% below its 52-week high of ₹260, which could mean pessimism or a value trap. There is no dividend, so returns must come purely from business performance. In this industry—Other Food Products—moats are often weak. Without clearer evidence of a durable competitive advantage or strong capital allocation, this feels more like a fast grower with a cheap price tag than a certainty. I would want to see sustained profit margins, better disclosures on financial health, and proof that this growth continues before committing real money. Patience is the investor's friend, and here, the data is too thin for me to be a willing buyer today.

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