Thejo Engg. (THEJO)
CyclicalFairStock Score: 39/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,104.9 |
| Market Cap | ₹2,282.96 Cr |
| P/E Ratio | 46.29 |
| ROCE | 22.1% |
| ROE | —% |
| Dividend Yield | 0.24% |
| Profit Growth | 61.31% |
| Debt/Equity | 0.11 |
| Sales Growth | 29.98% |
| Promoter Holding | 53.61% |
| 52-Week Range | ₹1,443.6 — ₹2,286.6 |
| Sector | Industrial Manufacturing |
| Book Value | ₹326.73 |
Strengths
- Strong ROCE of 22.10% indicates efficient use of capital
- Low debt-to-equity of 0.11 provides financial stability
- Promoter holding of 53.61% aligns interests with minority shareholders
- Sales growth of 19.67% shows decent demand traction
Concerns
- Net profit declined 18.39% despite sales growth of 19.67%
- P/E of 36.24 and P/B of 6.00 leave little margin of safety
- Latest quarter net profit of only ₹8 Cr on ₹162 Cr sales implies very thin margins
- Piotroski F-Score of 4/9 and FairStock Score of 30/100 signal poor financial health and risk
AI Analysis
Thejo Engineering is the kind of business I want to understand: an industrial products company with a clean balance sheet. It earns a healthy 22.10% ROCE and carries only 0.11 debt-to-equity. Promoters hold 53.61%, so skin in the game is genuine. Sales grew 19.67%, which shows the company is getting orders. So why do I hesitate? Because profit growth is minus 18.39%. Sales are rising but profits are falling. In the latest quarter, sales were ₹162 Cr and net profit was just ₹8 Cr. That is a very thin margin, and this is not a quality I want to pay a rich price for. At ₹1,784.50, the market cap is ₹1,829 Cr. The stock trades at 36.24 times earnings and 6 times book value. A P/E over 36 with shrinking profits and a 0.30% dividend yield leaves no margin of safety. Graham would call this speculation. The Piotroski F-Score of 4/9 and FairStock Score of 30/100 reinforce my discomfort. The 52-week range of ₹1,443.60 to ₹2,286.60 shows how much the stock moves; today's price is below the middle, but value is not a function of price alone. Maybe this is a cyclical business and the market is looking through a temporary earnings dip. If the cycle turns, the high P/E could be justified. But I cannot buy hope at 36 times earnings. I need to see profit margins recover and cash flows strengthen. I will wait on the sidelines. A wonderful business may be a wonderful investment, but only at a sensible price. Today, Thejo does not offer that.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer