Graphite India Ltd.
ISIN: INE371A01025 • Market Cap: ₹14,032 Cr
The 5-Pillar Quality Audit for Graphite India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (3.0%), Return on Capital Employed (4.1%), and equity compounding (3.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.06 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (0.9%) and 3Y PAT CAGR (-36.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 65.88 vs PEG of 2.30 and Dividend Yield of 1.0%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 65.3%, backed by 16.3% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.06)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Consistent Market Standing (Mid Cap)
Established player in the Capital Goods sector with an overall fundamental quality score of 52/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 4.1%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: 0.9%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Priced for Perfection (P/E: 65.88)
A steep valuation multiple of 65.88 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking GRAPHITE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 52/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare GRAPHITE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Graphite India Ltd. (GRAPHITE)Current | 52/100 | ₹14,032 Cr | 65.88 | 4.1% | 0.06 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: Graphite India Ltd.
Q:What is the 5-Pillar Fundamental Score for Graphite India Ltd. (GRAPHITE)?
Graphite India Ltd. has a RupeeTools Fundamental Score of 52/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (30/100), Financial Health (76/100), Growth (28/100), Valuation (52/100), and Ownership Quality (82/100).
Q:Is GRAPHITE fundamentally strong for long-term investment?
GRAPHITE currently holds a moderate quality rating of 52/100. While it operates in the Capital Goods sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does GRAPHITE pass the Coffee Can Investing filter?
No. GRAPHITE does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does GRAPHITE compare against other Capital Goods peers?
Within India's Capital Goods sector, GRAPHITE trades at a P/E of 65.88 and generates an ROCE of 4.1%. Compare its 5-Pillar score of 52/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.