Paramount Cosmet (507970)

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

Key Financials

Strengths

• Price of ₹50 is only a 14% premium to book value of ₹43.92, giving some asset protection.
• Piotroski F-Score of 6/9 suggests moderate financial stability on accounting metrics.
• Latest quarter shows no net loss, and ROCE of 5.19% is positive, so the business is not in immediate distress.
• Profit growth of 50%, while from a tiny base, shows some positive momentum versus prior periods.

Concerns

• ROE of 0.34% and ROCE of 5.19% show capital is being deployed with almost no shareholder return.
• Sales fell 5.94% and the latest quarter net profit is ₹0 Cr, so reported profit growth is not meaningful.
• P/E of 221.25 with PEG of 4.43 is an extreme valuation for a business with declining sales.
• Zero dividend and undisclosed promoter holding leave minority shareholders with no income and poor transparency.

AI Analysis

At ₹50, this is a business I would circle on the page and mark 'too hard.' Paramount Cosmet has a market cap of only ₹25 Cr and sells at 221.25 times earnings. That means the market is paying a very high price for very little current earnings power. The latest quarter says it all: sales of ₹5 Cr and net profit of ₹0 Cr. The 50% profit growth looks impressive until you realise it is growing off a negligible base. Sales actually fell 5.94%. Return on equity is 0.34%, and ROCE is 5.19%; both are far below what I expect from a strong consumer franchise. Book value is ₹43.92 per share, so a price of ₹50 is only a 14% premium. But assets that earn a sub-1% ROE are not producing much value; they are just a liquidating asset, not a growing business. There is no dividend, so the only way to make money is if Mr. Market pays more. A Piotroski F-Score of 6/9 gives some comfort on the balance sheet, but with no promoter holding disclosed and no debt-equity ratio available, transparency is weak. The PEG of 4.43 says the price is not justified even by the claimed growth. This is, at best, an early turnaround that has not yet shown up in sales or profits. I need proof of stable sales, double-digit ROE, and meaningful net profit before I invest. The sensible investor keeps his powder dry.

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