Yasons Chemex (YCCL)

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

Key Financials

Strengths

• Sales growth of 67.70% shows strong top-line momentum in the dyes and pigments business.
• Latest quarter is profitable: ₹49 Cr sales and ₹1 Cr net profit, avoiding outright losses.
• Promoter holding of 51.47% provides reasonable alignment with minority shareholders.
• Current price of ₹10.10 is only modestly above the 52-week low of ₹8.60, limiting some downside distance.

Concerns

• Profit growth of -45.74% despite sales growth of +67.70% signals severe margin compression and weak pricing power.
• ROCE of only 7.37% is too low for a small-cap chemical business to create meaningful value.
• Piotroski F-Score of 4/9 indicates deteriorating financial fundamentals.
• No dividend and a P/E of 27.55 on declining earnings leave no margin of safety or income cushion.

AI Analysis

Yasons Chemex is a tiny dyes and pigments player, priced at ₹10.10 with a market cap of just ₹21 Cr. Buffett's first test is economic quality: can the business earn consistent returns without excessive leverage? Here, the evidence is mixed at best. Sales jumped 67.70%, which sounds exciting. But profit fell 45.74%. In the latest quarter, revenue was ₹49 Cr and net profit only ₹1 Cr—a net margin of roughly 2%. That is not the hallmark of a franchise; that is a price-taker in a commodity-like chemical segment. ROCE of 7.37% is below what I would want for a small industrial, especially when profits are thin and no dividend is paid. The P/E of 27.55 with falling earnings is not cheap. The PEG of 0.41 is misleading because it relies on recent sales growth; earnings are moving the wrong way. A Graham-style investor looks for margin of safety. Here, book value, debt/equity, and ROE are unavailable, so I cannot assess financial strength properly. The Piotroski F-Score of 4/9 reinforces concern: the company's fundamentals are weakening. Promoter holding of 51.47% provides alignment, but promoter optimism alone is not enough. This looks like a cyclical commodity business in the down part of its margin cycle: revenue benefits from volume or price, yet profits are squeezed. I would not buy on hope; I would wait for evidence that margins recover and capital earns a real return. Until then, it is a possible turnaround or cyclical trap, not a compounder.

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