Mazda (MAZDA)

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

Key Financials

Strengths

• Reasonable valuation: P/E of 14.77 and P/B of 1.97 against ROE of 12.32% and ROCE of 15.17%
• Profit growth of 17.52% despite weak sales growth, with latest quarter net margin near 19%
• Piotroski F-Score of 7/9 suggests solid financial health and improving fundamentals
• Promoter holding of 48.58% aligns management with minority shareholders
• Dividend yield of 1.82% offers modest downside support

Concerns

• Top-line growth is very weak at just 1.30%, limiting long-term compounding
• Debt/Equity is not disclosed, leaving financial leverage unclear
• Stock is approximately 30% below its 52-week high of ₹308, indicating weak market sentiment
• Small market cap of ₹395 Cr and insufficient FairStock data reduce institutional comfort

AI Analysis

Let me look at Mazda the way I look at any business. At ₹215.60, I am being asked to pay about 14.8 times earnings and roughly twice book value. That is not an unreasonable price for a company earning 12.32% on equity and 15.17% on capital employed. But a fair price must be attached to a decent business. The sales growth figure bothers me: just 1.30%. A company that cannot grow its top line is not a compounding machine. Yet net profit rose 17.52%, which tells me management has been squeezing costs or improving margins. That can work for a while, but without volume growth, there is a ceiling. The latest quarter shows sales of ₹47 Cr and profit of ₹9 Cr, roughly 19% net margin—strong for an industrial products firm, if one quarter is representative. The balance sheet? Debt/equity is not disclosed, so I cannot fully sign off on financial health. Promoter holding at 48.58% does align their interests with mine. The Piotroski score of 7/9 suggests improving fundamentals, and a dividend yield of 1.82% gives a patient investor some return. Still, the stock sits about 30% below its 52-week high of ₹308, far from the low of ₹159. If industrial demand stays weak, the low growth will persist. I would call this a slow grower, not a wonderful franchise. I would want sales growth to revive and debt clarity to improve before treating it as a serious Buffett-style holding.

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