Siddhika Coatins (SIDDHIKA)

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

Key Financials

Strengths

• ROCE of 31.10% indicates highly efficient use of capital.
• P/E of 15.37 with PEG of 1.14 is reasonable for a company growing sales at 15.08%.
• Promoter holding of 63.09% keeps management aligned with minority shareholders.
• Piotroski F-Score of 7/9 points to sound financials despite limited data.
• Dividend yield of 1.55% offers a modest income cushion.

Concerns

• ROE, book value, and debt/equity are unavailable, leaving balance-sheet risk and true shareholder profitability unverified.
• Latest quarterly net profit of ₹5 Cr on ₹27 Cr sales looks inconsistent with trailing implied net profit of ~₹8.5 Cr; possible non-recurring or lumpy earnings.
• Profit growth at 11.89% trails sales growth at 15.08%, signaling margin pressure.
• As a small paints company, it faces intense competition from much larger, well-capitalized brands.

AI Analysis

At ₹216, Siddhika Coatins sits at a market cap of ₹131 crore, a small fish in a pond full of big paint sharks. The P/E of 15.37 and PEG of 1.14 tell me the market is pricing the business reasonably, not enthusiastically, as long as it can sustain double-digit growth. Sales grew 15.08% and profit grew 11.89% — decent, but the gap suggests margin pressure. The ROCE of 31.10% is genuinely impressive; it shows management can deploy capital well. Promoter holding of 63.09% also aligns owners with shareholders. Piotroski score of 7 out of 9 lends support to the idea that the underlying financial position is fine. But a value investor cannot live on a few ratios alone. I have no book value, no ROE, and no debt-to-equity figure. That bothers me. I cannot measure the true risk in the balance sheet. The latest quarter shows sales of ₹27 crore and net profit of ₹5 crore. If I translate the trailing P/E, the full-year net profit is only about ₹8.5 crore. That quarterly number looks too strong against that trailing run-rate, so I must question whether it is sustainable or whether it includes one-off gains. The 52-week range is ₹180.65 to ₹250.00, which tells me the market itself is uncertain. I like the high ROCE and the reasonable earnings multiple. But this is a small paint manufacturer facing powerful competitors, and the missing disclosure prevents me from estimating an intrinsic value with confidence. I would want the full annual report, clearer margins, and a better margin of safety before committing. At this price, it's interesting, not obvious.

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