NDR Auto Compon. (NDRAUTO)

FairStock Score: 39/100 — MIXED

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

Key Financials

Strengths

• High and consistent capital efficiency: ROE 23.29% and ROCE 22.85%.
• Low leverage: Debt/Equity of 0.16 leaves room to weather an auto downcycle.
• Strong growth: Sales up 18.89% and profit up 17.25%, with a Piotroski F-Score of 7/9.
• Promoter holding of 73.13% aligns management and minority shareholder interests.

Concerns

• Expensive valuation: P/E 29.67 and P/B 8.15 offer little margin of safety; PEG 1.64 suggests growth is priced in.
• Cyclical auto risk: stock is about 37% below its 52-week high of ₹1,186.60.
• Low dividend yield of 0.36% and a latest-quarter net margin of ~7.2% leave limited cushion.
• FairStock Score of 35/100 is mixed, cautioning against aggressive buying.

AI Analysis

At ₹743.50, this is not the kind of cheap share Graham would grab off the shelf. NDR Auto has built a decent business: return on equity of 23.29% and ROCE of 22.85% are well above what most auto component suppliers earn, and with debt-to-equity of only 0.16 the balance sheet looks sturdy. Sales are growing at 18.89% and profits at 17.25%, so the underlying machine is moving. Promoter holding of 73.13% also keeps management honest. With a Piotroski score of 7/9, the financial health gets a reasonable pass. But I have to hold my nose at the price. At a P/E of 29.67 and a P/B of 8.15, while book value is only ₹91.21, I am paying a rich premium for those returns. Putting it differently, the PEG is 1.64; the market has already priced in a good part of the company's own growth. The dividend yield of 0.36% means the investor depends on share price appreciation, not cash returned. And this is auto components; the 52-week fall from ₹1,186.60 to ₹743.50 is a reminder that this industry can be brutally cyclical. The latest quarter’s profit of ₹15 Cr on sales of ₹208 Cr is a net margin of about 7.2% — decent, but thin enough that a softening in auto demand could squeeze it. If I were a shareholder, I would not give a sell signal, but I would not buy blindly at this price either. I want growth to continue and a wider margin of safety before committing fresh money. The FairStock score of 35/100 merely tells me to proceed with caution. A fine business, but a demanding price.

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