Manugraph India (MANUGRAPH)

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

Key Financials

Strengths

• Price ₹13.73 is 30% below book value ₹19.51 (P/B 0.70).
• Low debt/equity of 0.10 provides balance sheet cushion.
• Promoter holding of 57.67% aligns management with minority shareholders.
• Reported sales growth of 175.98% and profit growth of 111.91%, with Piotroski F-Score 6/9.
• Current P/E of 11.64 is not demanding if recent earnings are sustained.

Concerns

• ROCE is deeply negative at -15.63%, indicating the core business is not earning its cost of capital.
• Latest quarter net profit is ₹0 crore, so trailing profitability may not reflect current earnings power.
• No dividend yield, so investors must rely solely on capital appreciation while waiting.
• High price volatility (52-week range ₹9.65-₹24.00) makes the earnings recovery uncertain.

AI Analysis

I have never been a fan of paying for hope, and Manugraph's recent sales growth of 175.98% would tempt many momentum buyers. But I am a value investor, so I ask: what are the earnings power and the assets behind the price? The company trades at ₹13.73 against a book value of ₹19.51 — a 30% discount. That margin of safety is real, and with debt/equity of just 0.10, the balance sheet is not keeping me awake at night. Promoters own 57.67%, so their money is at stake alongside mine. Yet Graham would remind me that a cheap asset is only worth owning if management can deploy capital sensibly. Here the record is mixed. ROE is 8.56%, modest, but ROCE is -15.63%. That negative return tells me the core business has not earned its cost of capital in recent times. The latest quarter shows sales of ₹18 crore and net profit of ₹0 crore. Trailing P/E of 11.64 and PEG of 0.08 look cheap, but those figures depend on a surge in profit growth of 111.91% that I cannot rely on; one quarter of zero earnings shows how fragile that recovery may be. The Piotroski F-Score of 6/9 gives slight comfort, but I would want several quarters of improving margins and positive profit before calling this a true turnaround. This looks less like a wonderful business and more like an asset play — a possible value trap if working capital turns and capital employed remains unprofitable. There is no dividend to pay me while I wait. Mr. Market has offered a low price, but the price must eventually be supported by cash earnings, not just book value.

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