Key risks
- Margin volatility: OPM swung from 7.58% to 12.02% in recent quarters; verify sustainability of the 300-bp recovery to 12.02%
- Profitability instability: Net profit ranged from -₹47.44 Cr to +₹112.7 Cr in consecutive quarters; EPS swung from -0.94 to 2.07
- Very low return on equity: ROE of 4.85% signals poor capital efficiency; verify if company can improve returns above cost of capital
- Elevated valuation: PE of 30.31 combined with 1-year return of -29.24% suggests market skepticism about earnings sustainability
Generated analysis · source review pending