Visaka Industrie (VISAKAIND)
CyclicalFairStock Score: 34/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹95.46 |
| Market Cap | ₹824.82 Cr |
| P/E Ratio | 9.66 |
| ROCE | 3.5% |
| ROE | 8.44% |
| Dividend Yield | 2.3% |
| Profit Growth | -4.47% |
| Debt/Equity | 0.37 |
| Sales Growth | 16.57% |
| Promoter Holding | 53.24% |
| 52-Week Range | ₹50.2 — ₹104.41 |
| Sector | Cement & Cement Products |
| Book Value | ₹95.7 |
Strengths
- Trades at a ~23% discount to book value: P/B of 0.77 against book value of ₹84.76
- Piotroski F-Score of 7/9 indicates improving financial health
- Debt/equity of 0.53 is moderate for a capital-intensive cement products business
- Promoter holding of 53.24% aligns interests with minority shareholders
- Profit growth of 117.49% and PEG of 0.28 suggest a possible earnings recovery
Concerns
- ROCE of only 3.50% and ROE of 8.44% reflect weak capital efficiency and no clear moat
- Latest quarter net profit of only ₹2 Cr on ₹368 Cr of sales implies very thin margins
- Sales growth of 4.59% is slow, pointing to limited pricing power
- Dividend yield of 0.82% offers very little income support while waiting for a recovery
AI Analysis
At ₹64.99, with book value of ₹84.76, I am immediately interested—Graham taught me to buy with a margin of safety, and this is a ~23% discount to net assets. Debt/equity of 0.53 is manageable, and a Piotroski score of 7/9 suggests financial health is improving. Promoter holding of 53.24% aligns owners with shareholders. However, a cheap balance sheet can be a trap. ROCE is only 3.50%, and ROE just 8.44%—this is not a wonderful business. Cement products are capital-intensive, cyclical, and have weak pricing power. Sales growth of 4.59% is pedestrian. The latest quarter delivered only ₹2 crore profit on ₹368 crore sales, a razor-thin margin. The 117.49% profit growth and 0.28 PEG look exciting, but they likely reflect a low base; with a P/E of 17.34, the market is not paying a huge price, but it is also not paying much for growth. In Graham's terms, the asset backing provides a cushion. But Buffett would ask: will the company earn a better return on ₹84.76 of book capital? If not, the discount to book may persist. I need to see sustained margin expansion and ROCE improving toward double digits before classifying this as a real value buy. For now, it is a cyclical with attractive book support but unproven earnings power. I'd keep it on my watchlist and wait for concrete evidence.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer