Mahickra Chem. (MAHICKRA)

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

Key Financials

Strengths

• Sales growth of 9.51% shows revenue expansion despite the weak profit environment
• Latest quarter sales of ₹49 Cr indicate a reasonable scale for a ₹150 Cr market cap company
• ROCE is positive at 9.86%, suggesting the operating asset base is earning a return
• Promoter holding of 40.10% provides some alignment with minority shareholders

Concerns

• P/E of 71.55 with profit growth of -32.59% implies an extremely expensive valuation for shrinking earnings
• PEG ratio of 7.52 far above 1, indicating no growth cushion for the high price
• Latest quarter net profit of ₹1 Cr on ₹49 Cr sales shows a fragile ~2% net margin
• Piotroski F-Score of 4/9 points to weak overall financial fundamentals

AI Analysis

At ₹229, Mahickra Chem. strikes me as a business to circle with caution rather than enthusiasm. The math simply does not work. A P/E of 71.55, while profits have fallen 32.59%, means I am being asked to pay a rich premium for declining earnings. The PEG ratio of 7.52 confirms this is not a growth bargain. The latest quarter tells the real story: ₹49 crore of sales produced just ₹1 crore of net profit — a roughly 2% margin. In a commodity dyes and pigments business, that is not pricing power; that is a treadmill. ROCE of 9.86% is only modest, and an F-score of 4/9 suggests the financial health is not improving. Promoter holding of 40.10% is acceptable, but not the high insider ownership I prefer in a small-cap. The dividend yield of 0.11% means I am not being paid to wait. Sales growth of 9.51% is the one bright spot, but if that growth does not convert into profits, it only feeds a low-margin machine. Graham would demand a margin of safety. At 71 times earnings, there is none. This looks like a cyclical business in a weak patch, and Mr. Market is still pricing it for perfection. I would keep this on the watchlist, not in the portfolio, and wait for either a meaningfully lower price or clear evidence of margin and return improvement.

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