Narmada Macplast (517431)

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

Key Financials

Strengths

• Historical ROE of 65.30% and ROCE of 20.83% indicate past capital efficiency on a small equity base.
• Small market cap of ₹84 Cr leaves scope for a meaningful price move if a genuine recovery happens.
• Stock trades about 39% below its 52-week high, so it is less euphorically priced than at the top.
• Latest quarter still recorded ₹3 Cr of sales, showing the business is operational despite zero profit.

Concerns

• Profit growth is down 91.18% and the latest quarterly net profit is ₹0 Cr, showing an earnings collapse.
• P/E of 50.55 and P/B of 28.85 are dangerously high for a business with shrinking sales.
• Piotroski F-Score of 3/9 signals weak overall financial health.
• Promoter holding is not disclosed, and dividend yield is negligible at 0.04%.

AI Analysis

At ₹21.06, with a market cap of ₹84 crore, Narmada Macplast is not a stock Benjamin Graham would touch with a ten-foot pole. The price-to-earnings ratio of 50.55 means I am being asked to pay more than 50 times current earnings—but current earnings have collapsed by 91.18%. The latest quarter shows net profit of just ₹0 crore, and sales are down 5.38%. There is no margin of safety; there is a margin of hope. Book value is a mere ₹0.73, so the stock sells at 28.85 times book. That is not value investing. The high ROE of 65.30% and ROCE of 20.83% look enticing, but they are calculated on an extremely thin equity base; a single bad year has already erased most profit. Piotroski F-Score of 3/9 reinforces my caution: the company scores poorly on profitability and financial health. I also notice dividend yield of just 0.04%—the shareholder receives almost nothing while waiting for a recovery. Promoter holding is not available, which is an additional governance red flag. In a small-cap, I need promoters to have meaningful skin in the game. Without that, I cannot value the business with confidence. Narmada Macplast operates in industrial plastics, a cyclical space. My guess is that the business is in the downturn phase of its cycle. But a cyclical can be attractive only if the balance sheet is solid. Here, I cannot verify debt because Debt/Equity is not reported, and the F-Score suggests trouble. I would rather miss this move than enter without evidence of a genuine turnaround. Price is what you pay; value is what you get. Right now, I see ₹84 crore market cap with zero predictable earnings. I would wait for visible quarterly improvement, better F-Score, and a price that offers a real bargain.

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