Pelatro (PELATRO)

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

Key Financials

Strengths

• Sales growth of 69.15% and profit growth of 62.46% show strong recent momentum.
• ROCE of 22.43% indicates efficient capital deployment.
• Piotroski F-score of 7/9 suggests sound financial health.
• Promoter holding of 52.62% aligns management interests with shareholders.
• PEG of 0.34 implies the stock is reasonably valued relative to its growth rate.

Concerns

• No book value, ROE, or debt/equity data means the balance sheet and equity returns are opaque.
• Latest quarter net profit of ₹4 Cr on sales of ₹38 Cr implies a modest ~10.5% margin.
• Small market cap of ₹316 Cr and web-based media/service sector suggest uncertain moat strength.
• Dividend yield of only 0.34% offers negligible cash return to investors.

AI Analysis

At first glance, Pelatro looks like the kind of small-cap growth story that makes value investors pause. Sales grew 69% and profit 62%, and at ₹304 the market capitalisation is only ₹316 Cr. That puts the trailing P/E at 22.46, which is not unreasonable for that pace of expansion; with a PEG of 0.34, the market seems to be pricing in much lower growth than the company has actually delivered. ROCE of 22.43% is genuinely good, and a Piotroski F-score of 7/9 suggests the financial statements are not deteriorating. Promoters owning 52.62% also aligns their interests with mine. But Graham would remind me that a wonderful growth rate is not the same as a wonderful business. I have no information on book value, return on equity, or debt-to-equity. That lack of balance-sheet transparency bothers me. The latest quarter shows sales of ₹38 Cr and net profit of ₹4 Cr - a margin of about 10.5%, which is decent but not spectacular. And with a market cap of ₹316 Cr, this is still a relatively small company. A single large client loss or a stumble in execution could hit the stock hard. The 52-week range of ₹246 to ₹325 shows the market itself has not yet decided what it is worth. I would not call this a deep-value Graham special. I would call it a fast grower with some attractive characteristics. The low PEG, healthy ROCE, and strong promoter holding make it worth watching. But I want more data: cash flow, debt, margins, client concentration, and a longer track record. Without those, I cannot measure the durability of the moat. I will keep it on my watchlist, not in my portfolio.

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