Styrenix Perfor. (STYRENIX)

FairStock Score: 51/100 — MIXED

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

Key Financials

Strengths

• Trailing ROE of 25.24% and ROCE of 26.53% show strong capital efficiency, albeit before the recent profit collapse.
• Sales growth of 25.87% indicates healthy demand for the company's products.
• Dividend yield of 2.82% provides some income while waiting for cyclical recovery.
• Promoter holding of 46.24% aligns management's interests with minority shareholders.
• Debt/equity of 0.44 is moderate and does not signal imminent financial distress.

Concerns

• Net profit fell 62.47%, and the latest quarter earned only ₹16 crore on ₹869 crore sales—a margin of roughly 1.84%.
• Piotroski F-Score of 4/9 points to deteriorating fundamentals across profitability, leverage, and efficiency.
• At P/E of 19.73 and P/B of 5.04, the market is still pricing in recovery rather than offering a margin of safety.
• Moderate debt of 0.44 D/E can amplify the pain if the cyclical margin squeeze persists.

AI Analysis

I appreciate a business I can understand; Styrenix is a specialty chemicals player, but the numbers tell me this is not a smooth compounder. Sales rose 25.87%, yet profits fell 62.47%. In the latest quarter, ₹869 crore of revenue generated only ₹16 crore of net profit—a hairline margin that any raw-material swing or pricing pressure can erase. That is the signature of a cyclical, not a company with durable pricing power. The trailing return ratios—ROE 25.24%, ROCE 26.53%—look attractive, but they are rear-view mirrors, based on earlier earnings. Today's owner-earnings are far thinner. The Piotroski F-Score of 4/9 reinforces my caution: financial health is deteriorating across multiple signals. Borrowing is moderate at 0.44 debt-to-equity, so I don't fear insolvency, but leverage in a down-cycle reduces the margin of safety. At ₹2,310, the market capitalises the company at ₹3,368 crore, or 19.73 times trailing earnings and 5.04 times book value. That is not a bargain for a company whose latest quarterly profit annualises to only about ₹64 crore. The 2.82% dividend is pleasant, but dividends are only safe if earnings stabilise, and the 46.24% promoter holding at least aligns promoters with public shareholders. I would call this a well-run cyclical caught in a margin trough. I want either a cyclically-adjusted price that gives me margin of safety, or demonstrable proof that margins are structurally recovering. The FairStock Score of 52/100 tells me to be patient. In value investing, avoiding overpaying is often as valuable as finding the next great company.

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