Permanent Magnet (504132)
Fast GrowerFairStock Score: 31/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,037.1 |
| Market Cap | ₹910.28 Cr |
| P/E Ratio | 49.25 |
| ROCE | 15.2% |
| ROE | 12.73% |
| Dividend Yield | 0.26% |
| Profit Growth | 62.75% |
| Debt/Equity | — |
| Sales Growth | 15.54% |
| 52-Week Range | ₹618.6 — ₹1,120 |
| Sector | Electrical Equipment |
| Book Value | ₹171.02 |
Strengths
- Strong profit growth of 62.75% with sales growth of 15.54%
- Piotroski F-Score of 7/9 indicates healthy financials
- No debt on the balance sheet (D/E N/A)
- ROCE of 15.20% is above ROE, suggesting efficient capital use
Concerns
- P/E of 49.25 and P/B of 6.06 leave no margin of safety
- Latest quarterly net margin only ~3.5% (₹2 Cr profit on ₹57 Cr sales)
- FairStock Score of 25/100 flags significant risk
- Promoter holding data not available – ownership transparency lacking
AI Analysis
When I look at Permanent Magnet, I see a business growing fast, but I must ask: is the price justified by the fundamentals? The company grew sales by 15.54% and profits by 62.75%, which is impressive. Yet a P/E of 49.25 means the market is paying a heavy premium for that growth. Even using a PEG of 1.26, the valuation leaves little room for error. Graham would demand a margin of safety, and at ₹1,037 per share against a book value of ₹171, I find none. The return on equity is 12.73% and ROCE is 15.20% – decent, but not extraordinary for a business trading at over six times book. The latest quarter shows sales of ₹57 Cr but net profit of only ₹2 Cr, a net margin near 3.5%, which tells me this is a capital-intensive or competitive niche. The Piotroski score of 7 suggests the balance sheet is healthy, and with no debt on the books, financial risk is low. However, the FairStock score of 25/100 is a clear warning. Dividend yield is negligible at 0.26%, so the investor's return must come entirely from capital appreciation. I also note promoter holding is not disclosed, which bothers me – I want to see owners with skin in the game. This looks like a fast grower riding a favourable cycle, but at this price, the business must execute flawlessly for years to justify valuation. I would rather wait for a better price. Patience is the investor's greatest ally.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer