SP Refractories (SPRL)

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

Key Financials

AI Analysis

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

When I see a ₹20 crore company trading at 6 times earnings, my first reaction is caution. Graham taught me that a low price is only an entry ticket; the real test is whether the business earns its keep. SP Refractories shows some encouraging signals: a Piotroski score of 7 out of 9, ROCE of 19.43%, and a profit growth figure of 126.80%. The latest quarter adds ₹2 crore of net profit on ₹16 crore of sales, which implies a net margin of roughly 12.5%. At ₹109.90, the stock is well below its 52-week high of ₹189.45, so Mr. Market has already served a dose of pessimism. But Buffett would ask: is the earnings power durable? Sales growth is a moderate 13.12%, far below the profit jump. That gap tells me the low P/E of 6.01 and PEG of 0.09 are cheap only if the profit explosion is not a one-off. I also cannot ignore missing data: no book value, no ROE, no debt-equity ratio. In a microcap, hidden leverage is a silent killer. The zero dividend yield is not fatal, but it means investors rely entirely on capital gains and reinvestment. On the positive side, promoter holding of 69.42% is a strong alignment indicator, and the F-score of 7/9 suggests improving financials. This looks like a fast grower in an early, promising stage, but a Grahamite would demand a margin of safety. The current price is halfway between the low and high, and with only ₹20 crore market cap, one bad quarter could erase value quickly. I would keep it on a watch list, size any position very small, and wait for evidence that this growth is repeatable.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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