Patil Automation (PATILAUTOM)

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

Key Financials

Strengths

• Sales and profit growth of 21.78% and 23.04% respectively show a healthy compounding trajectory.
• ROCE of 24.47% signals strong capital efficiency, a key attribute for a sustainable industrial player.
• Piotroski F-score of 7/9 indicates generally sound financial fundamentals.
• Promoter holding of 69.29% aligns management interests with minority shareholders.
• Latest quarter net margin of roughly 11% (₹8 crore profit on ₹71 crore sales) is respectable.

Concerns

• P/E of 25.22 with a PEG of 1.13 leaves limited margin of safety for a small-cap industrial.
• Zero dividend yield means investors rely entirely on future capital appreciation and growth.
• Absence of book value, ROE, and debt data makes a full balance-sheet assessment impossible.
• Market cap of ₹331 crore and a wide 52-week range suggest inherent volatility and liquidity risk.

AI Analysis

At ₹158.50, Patil Automation is a small industrial-products business capitalised at ₹331 crore. I like compounders, and this one has delivered sales growth of 21.78% and profit growth of 23.04%. ROCE of 24.47% suggests the business is earning a strong return on capital employed, which is the first test I ask: can it reinvest at attractive rates? The Piotroski F-score of 7/9 indicates solid financial health, and 69.29% promoter holding means owners are heavily aligned with outside shareholders. No dividend, however, so the only return is from growth; that requires confidence in management. At a P/E of 25.22, the market is asking a lot. With a PEG of 1.13, the price is not outrageous relative to growth, but it leaves little margin of safety. I would compare this to a wonderful business at a fair price; watch that growth actually continues. The latest quarter shows sales of ₹71 crore and net profit of ₹8 crore, a margin of roughly 11%. That is respectable for an industrial company. But I lack book value, ROE, and debt details, so I cannot judge the balance sheet fully. That bothers me. The 52-week range of ₹112 to ₹226 reminds me that smaller industrials can swing violently. Patil Automation looks like a fast grower with good capital efficiency and aligned promoters. But at this price, the burden is on growth. If profit growth slips, the multiple will compress. I would keep this on a watchlist and demand a better price or more data before committing real money.

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