Mandeep Auto (MANDEEP)

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

Key Financials

Strengths

• Trailing P/E of 6.34 and PEG of 0.10 suggest the market is pricing in little; valuation could be attractive if earnings are sustainable.
• Profit growth of 124.26% and Piotroski F-Score of 7/9 point to improving financial fundamentals.
• Promoter holding of 67.04% aligns management with minority shareholders.
• Sales growth of 6.97% gives a modest sign of business momentum.

Concerns

• Latest quarter shows ₹17 Cr sales but net profit of ₹0 Cr, raising doubt over earnings quality and sustainability.
• ROCE of 6.98% is low; the business may be consuming capital without generating strong returns.
• No dividend, and no book value/ROE/debt-equity data disclosed, so margin of safety is hard to quantify.
• With a market cap of ₹20 Cr, the stock is a microcap with likely illiquidity and volatility.

AI Analysis

At ₹23.35, this auto-components business is valued at just ₹20 crore. The trailing P/E of 6.34 initially looks like a Graham-style bargain, and the 124% profit growth with a 0.10 PEG makes it tempting. But I must ask whether the earnings power is real and durable. The latest quarter reports sales of ₹17 crore but net profit of essentially zero. That is a serious warning. A low multiple on a tiny profit that has suddenly spiked is not the same as owning a quality business at a fair price. Sales growth of about 7% is moderate and suggests no strong pricing power. ROCE of only 6.98% is below what I would expect from a company with a durable competitive advantage. In a cyclical industry like auto components, today's low P/E can quickly become tomorrow's higher P/E when earnings collapse. The Piotroski F-Score of 7/9 is encouraging and points to improving financial health. Promoter holding at 67% also aligns interests with minority shareholders, which I respect in a small-cap. Still, I cannot calculate return on equity or book value because those figures are not available. There is no dividend to support the investor while waiting. With a market cap of only ₹20 crore, liquidity and governance risks are real. Charlie and I prefer businesses we can understand and value with available facts; here the available facts do not prove a margin of safety. I would call this a cyclical business, not a predictable grower. If the company delivers consistent quarterly profits, raises ROCE well above 7%, and provides full balance-sheet data, I would study it further. Until then, I will keep my money alongside companies with clearer moats and stronger returns.

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