Prism Medico (512217)

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

Key Financials

Strengths

• Trading at 0.90 price-to-book, i.e., 10% below book value of ₹30.31 per share.
• Reported trailing ROE is positive at 3.99%, showing some residual earnings relative to equity.
• Stock trades well above its 52-week low of ₹13.10, indicating some market interest.

Concerns

• Revenue has collapsed 66.67% and latest quarter sales are ₹0 Cr, suggesting operations have halted.
• Piotroski F-score of 2/9 indicates very poor financial health and likely deteriorating fundamentals.
• Negative ROCE of -0.40% shows capital deployed is not generating positive returns.
• Zero dividend and no promoter holding disclosure create transparency and governance concerns.

AI Analysis

Prism Medico is a classic value trap warning. The stock trades at ₹27.17, below book value of ₹30.31, a price-to-book of 0.90. On the surface, that looks like a Graham-style asset play. But a discount to book is only meaningful if the assets are worth book value. Here the fundamentals say otherwise. Sales have crashed by 66.67% and the latest quarter shows zero revenue. An NBFC with no revenue is not an operating business; it is a shell. Return on equity is just 3.99%, and return on capital employed is negative at -0.40%, meaning the company is destroying value. The Piotroski F-score of 2 out of 9 is a red flag, signalling weak operating efficiency, deteriorating margins, and poor liquidity. With profit growth at 0.00% and a net loss of ₹0 crore in the latest quarter, there is no earnings engine. The P/E of 28.62 is a statistical illusion because earnings are negligible. There is no dividend, and promoter holding is not disclosed, which raises governance questions. Buffett would say it is better to buy a wonderful company at a fair price than a fair company at a wonderful price. This is neither wonderful nor truly cheap, because the book value could be eroding quickly. I would not touch this without deep diligence on the loan book, asset quality, and provisioning. At best, it is a hard-to-value asset play. At worst, a liquidation case. I need to monitor whether operations restart, whether management brings in capital, and whether book value holds up. Until then, this is a pass.

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