Key risks
- Earnings volatility: Sep 2025 recorded losses of ₹37–43 crore (OPM –3.96% to –11.28%), reversing the ₹55–70 crore profits and 20%+ margins in surrounding quarters; verify the cause and recurrence risk.
- Weak capital returns: ROE 6.31% trails typical cost of capital, indicating shareholder capital generates inadequate returns despite operational profitability.
- Valuation disconnect: PE 27.83 far exceeds ROE 6.31%, suggesting the market prices in growth not yet evidenced; verify the basis for this valuation premium.
- Leverage in volatile business: D/E 1.08 is moderate-to-high in a business with demonstrated earnings swings, creating refinancing risk in a downturn.
Generated analysis · source review pending