Stallion India (STALLION)

FairStock Score: 41/100 — MIXED

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

Key Financials

Strengths

• Zero debt (D/E 0.00) provides financial stability through gas industry cycles.
• ROCE of 19.67% shows efficient use of capital.
• Sales growth of 22.90% and latest quarterly sales of ₹105 Cr indicate demand momentum.
• Piotroski F-Score of 7/9 reflects generally sound operational health.
• Promoter holding of 47.80% aligns management interest with minority shareholders.

Concerns

• P/E of 32.13 with profit growth of only 13.80% gives a PEG of 1.75, so valuation is rich relative to growth.
• ROE is reported as N/A despite a P/B of 4.04, raising questions about true equity returns.
• Zero dividend yield means investors get no income while waiting for growth.
• Price of ₹159.54 is far below the 52-week high of ₹423.80, suggesting possible de-rating or unknown business pressures.

AI Analysis

At ₹159.54, Stallion India sells at 32 times earnings and 4 times book value. That is not a bargain. Let me start with what I like: no debt, ROCE of 19.67%, and sales up 22.9%. A seven out of nine Piotroski score also tells me the company's financial health is decent. In the latest quarter it did ₹105 Cr sales and ₹11 Cr net profit, so there is a real business here. Industrial gases have durable customer relationships and repeat demand, but I must be honest: the figures don't prove a wide moat. Profit growth of only 13.8% trails sales growth, and a PEG of 1.75 means I am paying a premium for growth that may not materialize. The shares trade at 4 times book value, yet ROE is reported as N/A. That bothers me. If equity were earning a strong return, I would expect to see it. The price is also far below the 52-week high of ₹423.80; maybe Mr. Market realised the previous price was too optimistic. I am not buying a falling knife based on hope. With zero dividend, the investor must rely entirely on future earnings growth and capital gains. That leaves no margin of safety at 32 times earnings. I would wait for either a much lower price, or evidence that profit growth can accelerate toward sales growth. I'd also want to understand why the market repriced the stock so sharply. Until then, this is a decent company selling at a demanding price, not a wonderful investment at today's quote.

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