Marsons (517467)

FairStock Score: 6/100 — RISKY

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

Key Financials

Strengths

• Reported ROE of 30.51% and ROCE of 33.82% suggest efficient use of capital, if the equity base is accurate.
• Piotroski F-Score of 7/9 points to reasonably healthy profitability, leverage, and efficiency signals.
• Latest quarter is profitable: Sales ₹46 Cr and Net Profit ₹6 Cr.
• Sales and profit are still growing, albeit slowly at 4.01% and 2.53% respectively.

Concerns

• Valuation is extreme: P/E 72.49, P/B 6.55, and PEG 22.17 are tough to justify with almost no growth.
• Data inconsistency: current price ₹41.48 is below the stated 52-week range of ₹121-₹200.05, undermining confidence in the figures.
• Debt/Equity and promoter holding are N/A, so leverage and promoter alignment cannot be assessed.
• FairStock Score is 6/100 (RISKY), and dividend yield of 0.04% offers no meaningful income or downside cushion.

AI Analysis

Let me begin with a confession: the first thing I check is price versus value, and here the price itself raises alarms. The stock trades at ₹41.48 with a market cap of ₹728 Cr, yet the stated 52-week range is ₹121-₹200.05. Mr. Graham used to say that an unexplained price drop is a sign to dig deeper, not to buy. The valuation is far from comfortable: P/E of 72.49, P/B of 6.55, and PEG of 22.17. A company growing sales by 4.01% and profit by 2.53% cannot justify seventy-two times earnings unless it has an extraordinary moat. I see no moat in 'Other Electrical Equipment.' The book value is ₹6.33, so the market is paying 6.5 times what shareholders own. Yes, ROE of 30.51% and ROCE of 33.82% look attractive, and the Piotroski F-score of 7/9 suggests respectable financial health. The latest quarter shows ₹46 Cr sales and ₹6 Cr net profit. But with profit growth of only 2.53% and a FairStock Score of 6/100 labelled RISKY, I am not convinced. Debt/equity is N/A, promoter holding is N/A: two more blanks in a page that should tell me how management thinks and how much leverage exists. The dividend yield of 0.04% means you're not being paid to wait. A value investor needs margin of safety—a price low enough for mistakes. At ₹41.48, this has none. I could call it a possible turnaround because of the huge fall from the quoted range, but Benjamin Graham taught me to buy with facts, not hopes. The facts don't pass my test. I'd rather ignore this one and wait for a better price—or better data.

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