Spectrum Electr. (SPECTRUM)

FairStock Score: 40/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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