NGL Fine Chem (NGLFINE)
Fast GrowerFairStock Score: 33/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3,454 |
| Market Cap | ₹2,133.89 Cr |
| P/E Ratio | 44.25 |
| ROCE | 8.29% |
| ROE | 10.65% |
| Dividend Yield | 0.05% |
| Profit Growth | 99.1% |
| Debt/Equity | 0.37 |
| Sales Growth | 40.7% |
| Promoter Holding | 72.74% |
| 52-Week Range | ₹1,271 — ₹3,602 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹532.92 |
Strengths
- Sales growth of 45.49% shows strong revenue momentum.
- Debt/Equity of 0.29 indicates a conservative balance sheet.
- Promoter holding of 72.74% aligns interests with minority shareholders.
- Piotroski F-Score of 7/9 suggests improving operational health.
- Latest quarter net profit of ₹15 crore on sales of ₹126 crore shows current profitability.
Concerns
- P/E of 47.79 and P/B of 5.22 leave little margin of safety.
- ROE of 10.65% and ROCE of 8.29% are mediocre for such a high valuation.
- 1,000% profit growth is from a low base, making the PEG of 0.09 misleading.
- Dividend yield of 0.08% is negligible, and the stock is 36% below its 52-week high, showing volatility.
AI Analysis
I sit with the numbers and ask whether this is a business I understand and a price I can tolerate. NGL Fine Chem operates in pharmaceuticals, with a market cap of ₹1,422 crore and a share price of ₹2,286. The latest quarter shows sales of ₹126 crore and net profit of ₹15 crore. That is encouraging, but one quarter is not a mosaic. Trailing earnings support the current P/E of 47.79, and book value of ₹437.58 gives a P/B of 5.22. These are not Graham-style valuations. A 10.65% ROE and 8.29% ROCE are unimpressive for a company priced like a compounder. The balance sheet is decent—debt/equity is 0.29—and promoter holding at 72.74% aligns owner and management interests. The 45.49% sales growth is real and attractive; the 1,000% profit growth, however, is a low-base optical illusion. A PEG of 0.09 is a mathematical fantasy when the growth rate itself is distorted by a tiny base. Piotroski F-Score of 7/9 tells me recent operations are improving, so there is something real here. But the dividend yield is 0.08%; I am not being paid to wait. The stock has already fallen from a 52-week high of ₹3,602 to ₹2,286, which may look cheaper, but a falling knife is not automatically a bargain. Benjamin Graham said price is what you pay, value is what you get. I cannot find a margin of safety at 47.79 times earnings with a FairStock Score of 30/100 flagged as risky. I would wait for a much lower price or several more quarters of demonstrated earnings power that meaningfully reduces the multiple.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer