Murudesh.Ceramic (MURUDCERA)
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹30.5 |
| Market Cap | ₹184.66 Cr |
| P/E Ratio | 16.76 |
| ROCE | 5.24% |
| ROE | 3.62% |
| Dividend Yield | 1.64% |
| Profit Growth | -58.11% |
| Debt/Equity | 0.37 |
| Sales Growth | 8.41% |
| Promoter Holding | 73.94% |
| 52-Week Range | ₹24.2 — ₹46 |
| Sector | Consumer Durables |
| Book Value | ₹72.02 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
At first glance, Murudesh Ceramic is not the kind of franchise I hunt for. Ceramics is a capital-intensive, cyclical commodity business, and the reported returns confirm my caution: ROCE is just 5.24% and ROE is only 3.62%. That means the assets in the ground are not earning their keep. But Graham taught me to look at the balance sheet as well. Here I can buy a share with book value of ₹60.58 for ₹33.45 — that is 55 paise for every rupee of book. The debt-equity ratio is 0.35, so leverage is not scary. The Piotroski score of 7 out of 9 suggests the financial condition has recently improved, and promoters own 73.94%, so their interests are tied to mine. I cannot ignore the numbers that look exciting on the surface. Profit growth of 152.97% sounds wonderful, but this is off a low base. Sales growth is a modest 1.91% and the latest quarter shows ₹51 Cr sales with ₹5 Cr net profit. That works out to a healthy margin this quarter, but one quarter is not durability. The stated PEG of 0.13 is misleading when the growth is a rebound, not a stable trend. The P/E of 14.92 is not expensive, but it is of less use when earnings are recovering from a trough. The dividend yield of 1.53% offers a small reward while I wait. The real question is whether management can earn a better return on all that book value. If the business keeps earning only 3-5% on capital, a discount to book can persist for many years. This feels more like a value asset play than a wonderful compounder. I would only commit money if I had confidence in a genuine turnaround in returns, not just a one-time profit jump. I need the next few quarters to show the same discipline.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer