Spectrum Electr. (SPECTRUM)
Fast GrowerFairStock Score: 40/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,236.9 |
| Market Cap | ₹3,515.03 Cr |
| P/E Ratio | 78.74 |
| ROCE | 15.96% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 129.6% |
| Debt/Equity | 1.02 |
| Sales Growth | 83.2% |
| Promoter Holding | 72.72% |
| 52-Week Range | ₹1,050 — ₹3,011.7 |
| Sector | Industrial Manufacturing |
| Book Value | ₹155.83 |
Strengths
- Sales growth of 76.22% shows strong recent demand traction.
- Profit growth of 273.43% indicates significant operational leverage or favorable conditions.
- Promoter holding of 72.72% aligns owner-manager interests.
- Piotroski F-Score of 7/9 signals solid financial health on nine fundamental metrics.
- PEG of 0.35 suggests the current valuation is less demanding if high growth persists.
Concerns
- P/E of 61.33 and P/B of 8.34 leave a very thin margin of safety at ₹1143.80.
- ROCE of 15.96% is moderate, not exceptional enough to justify a premium multiple.
- Debt/Equity of 0.76 and zero dividend yield provide no downside cushion.
- Latest quarterly net margin of about 8% (₹10 Cr profit on ₹125 Cr sales) is thin; price is down from a high of ₹2643.90, reflecting volatility.
AI Analysis
I look for businesses with durable competitive advantages and sensible prices. Spectrum Electr. shows impressive recent momentum—sales up 76% and profits up 273%—but I must ask: is this growth built on a moat or just a cyclical tailwind? The P/E of 61.33 and P/B of 8.34 are steep by any Graham standard. For that price, I need exceptional business quality, yet ROCE is only 15.96%—decent but hardly a fortress. Debt/equity of 0.76 is acceptable but not conservative; I see no dividend to reward patient shareholders. The latest quarter's net profit of ₹10 Cr on ₹125 Cr sales implies a thin margin. The stock trades near its 52-week low of ₹1050, reminding me that high expectations can be punished. Promoter holding at 72.72% is a positive sign; owners are aligned. The Piotroski F-score of 7/9 indicates solid financial health, and the PEG of 0.35 suggests the market is pricing in much lower growth than the past performance. But I cannot rely on a 273% profit growth extrapolation; base effects and one-off orders can flatter. Graham would say to demand a margin of safety. At ₹1143.80, I see momentum, but not enough evidence of a durable moat or a bargain. I'd watch for sustained order flows and improvement in capital returns before committing capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer