Permanent Magnet (504132)

FairStock Score: 31/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I understand, run by able people, at a price that leaves room for error. Permanent Magnet, in other electrical equipment, has a ₹910 Cr market cap and trades at ₹1037.10. The growth record is attractive: sales growth of 15.54%, profit growth of 62.75%, and a five-year revenue CAGR of 13.97%. ROCE of 15.20% and ROE of 12.73% suggest the business earns positive returns, though not mouth-watering ones. The Piotroski F-score of 7/9 adds some confidence in financial direction. But the latest quarter shows sales of ₹57 Cr and net profit of just ₹2 Cr, a very thin margin. That makes the 62.75% profit growth less comforting unless it is sustainable. Also, debt/equity and promoter holding are not available, so I cannot judge leverage or management alignment. Valuation is rich: P/E 49.25, P/B 6.06, book value ₹171.02, and price near the 52-week high of ₹1064. Dividend yield is only 0.26%, so almost all return depends on growth. PEG of 1.26 is not outrageous if growth continues, but FairStock Score 31/100 screams risk. Moat? I see no proof of durable pricing power in this competitive equipment space. At this price, Mr. Market already expects a lot. I would wait for a wider margin of safety, clearer balance-sheet and promoter data, and consistent net profit. Not a Graham bargain today.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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