Yuken India (YUKEN)

FairStock Score: 20/100 — RISKY

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

Key Financials

Strengths

• Low leverage with Debt/Equity at 0.33
• High promoter holding of 58.04% aligns long-term interests
• ROCE of 11.10% remains positive even in a weak phase
• Sales still grew 4.81% year-on-year

Concerns

• Profit growth collapsed by -111.33% and the latest quarter shows a net loss of ₹1 Cr
• Valuation is rich at P/E 64.42, PEG 13.39, and P/B 3.54
• Weak return profile with ROE of only 5.02% and Piotroski F-Score of 4/9
• Dividend yield is negligible at 0.19%

AI Analysis

At ₹744.40, Yuken India carries a market cap of ₹1,063 Cr. A price-to-book of 3.54 times for a business earning only 5.02% on equity is not value; it is expensive. In Graham's terms, price must be justified by both past performance and future promise. Here the promise is uncertain. Sales grew 4.81%, but profit growth collapsed by 111.33%, and the latest quarter shows ₹112 Cr in sales with a net profit of minus ₹1 Cr. That tells me earnings are cyclical and currently under pressure. With a P/E of 64.42 and a PEG ratio of 13.39, the market is paying a premium for growth that is not visible in these numbers. The Piotroski F-Score of 4/9 reinforces my caution—financial health is mediocre, not a classic low-risk Graham candidate. Moat? In hydraulic pumps and compressors, there can be niche engineering and customer relationships. But I cannot see pricing power from these figures; ROCE of 11.10% is modest, and the declining return on equity suggests competitive or cyclical forces squeezing margins. The balance sheet is not reckless—debt-to-equity is 0.33—and promoter holding at 58.04% does align interests. Still, low leverage cannot turn a fundamentally mediocre return into an attractive investment. Dividend yield of 0.19% is negligible; the investor waits for capital gains, which Berkshire-style analysis never depends on. A FairStock score of 0/100 says this is risky. I prefer simple, predictable businesses with high returns on capital and clear moats. Yuken fails on return, valuation, and near-term momentum. At best it is a cyclical in a difficult phase; at worst it is a value trap. I would put it on my watchlist, not in my portfolio, and demand a much lower price and improving earnings before considering it.

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