Quality Foils (QFIL)

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

Key Financials

Strengths

• Promoter holding at 59.59% aligns management with minority shareholders
• Piotroski F-Score of 7/9 indicates sound operational and financial health
• Sales growth of 22.38% shows demand traction
• P/E of 11.66 and PEG of 0.68 appear statistically cheap if earnings improve
• Small market cap of ₹17 crore could offer niche upside if margins recover

Concerns

• ROCE of 4.19% is poor, suggesting capital is not being rewarded adequately
• Latest quarter net profit of ₹1 crore on ₹94 crore sales implies roughly 1% net margin; profit growth of 1.22% lags sales growth badly
• No dividend and zero yield, so returns depend entirely on price appreciation
• Insufficient data on book value, ROE, and debt/equity prevents a Graham-style margin of safety calculation
• Current price of ₹38 is below the 52-week low of ₹39.90, indicating weak momentum and possible illiquidity

AI Analysis

Owning a business like Quality Foils requires the temperament of a farmer, not a hunter. The figures tell me this is a commodity steel products company with a tiny market cap of ₹17 crore, a price of ₹38, and a P/E of 11.66. At first glance the stock looks inexpensive, but price is what you pay, value is what you get. Sales grew 22.38%, yet profit grew only 1.22%, and the latest quarter shows ₹94 crore of sales producing just ₹1 crore of net profit. That is roughly a 1% net margin. This is not the kind of durable economics I look for. ROCE is 4.19%, which is far below what a good business should earn on capital. There is no dividend, so the shareholder must rely on capital gains from an industry that is inherently cyclical. On the positive side, the Piotroski score of 7/9 suggests the company has managed its operations and working capital decently, and promoter holding at 59.59% does align owners with shareholders. The PEG of 0.68 looks attractive only if earnings growth accelerates, but the 1.22% profit growth contradicts that. Without book value, ROE, or debt/equity data, I cannot calculate a proper margin of safety. I would place this in the too-hard pile unless the business starts converting its top-line growth into bottom-line profits and improving ROCE. In steel, the low-cost producer with pricing power survives; everyone else is a price-taker. I need evidence of that moat, and the numbers here do not show it.

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