Milton Industri. (MILTON)

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

Key Financials

Strengths

• High promoter holding of 72.96% aligns owner-manager interests.
• Piotroski F-Score of 6/9 indicates reasonably sound financial health.
• Latest quarter is profitable: net profit ₹1 crore on sales of ₹22 crore.
• Profit growth of 33.33% suggests improving margins or cost discipline.

Concerns

• P/E of 58.27 is very high for a business with flat sales growth of -1.12%.
• ROCE of 5.01% is low and signals weak value creation on capital employed.
• Zero dividend yield provides no cash return to minority shareholders.
• Missing book value, ROE, and debt/equity data make a reliable margin of safety impossible to calculate.

AI Analysis

Let’s examine Milton Industri the way Graham would: as a small slice of a business. It makes plywood boards and laminates in India—a fragmented, competitive industry where brand pricing power is weak. The sales growth of -1.12% tells me demand has been flat. What is moving is the bottom line: profit is up 33.33%, and the latest quarter shows ₹1 crore net profit on ₹22 crore sales. That could be a genuine turnaround, perhaps from cost-cutting and better product mix. But the market is already pricing hope: P/E of 58.27 and PEG of 1.75. For ₹82 crore market cap, I am paying a rich multiple for a company with ROCE of only 5.01%. A business that earns 5% on capital is creating little value; after inflation and taxation, shareholders are not getting meaningfully richer. There is no dividend yield, so the only reward is an expected rise in price. Promoter holding at 72.96% is good alignment, and the Piotroski F-score of 6/9 gives modest comfort. Yet I cannot calculate book value, ROE, or debt/equity from the data available. In a turnaround, I need to verify that the working capital cycle, debt levels, and true return on equity are improving; otherwise the quarterly profit may be a blip. Graham would want a margin of safety. At ₹47.80, near the top of the 52-week range of ₹24.85-₹53.50, I find no such margin. This might become an interesting business if the sales line turns positive, ROCE climbs toward double digits, and full financials are published. Until then, Milton belongs on the watchlist, not in our portfolio. Better to miss a possible recovery than to overpay for a low-return business.

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