Prima Agro (519262)

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

Key Financials

Strengths

• Trading at ₹26.47 versus book value of ₹28.53 gives a P/B of 0.93, offering a margin of safety on stated assets.
• Low trailing P/E of 6.22 and a market cap of only ₹14 Cr mean the stock is not carrying any growth premium.
• ROE is positive at 6.86%, even though ROCE is negative, indicating some return to equity holders exists.
• Piotroski F-Score of 5/9 suggests moderate financial health, not a severely distressed balance sheet.

Concerns

• ROCE is negative at -1.95%, and the latest quarter shows net profit of ₹0 Cr on just ₹2 Cr sales, so operating economics are weak.
• Sales growth is exactly 0.00%, while the claimed 124% profit growth is likely a low-base effect rather than durable compounding.
• No dividend is being paid, and promoter holding is undisclosed, adding governance and minority-shareholder uncertainty.
• The PEG ratio of 0.05 is unreliable because it is built on an earnings jump that the latest quarter does not confirm.

AI Analysis

Prima Agro is exactly the kind of small, out-of-favour balance sheet that catches a Graham scanner's eye: at ₹26.47, the market cap is only ₹14 Cr, against a book value of ₹28.53 per share, so I am buying equity at 93% of stated book. But cheap is not enough. ROE is 6.86% — passable, but not a compounding machine. ROCE is -1.95%, meaning actual operations do not earn their keep. That is a red flag. Sales growth is 0.00% and the latest quarter shows sales of ₹2 Cr and net profit of ₹0 Cr. The 124% profit growth is dramatic, but likely a low-base artifact; 'profit growth' with zero revenue growth and a zero quarter is not durable. With no dividend and promoter holding undisclosed, minority owners have little to hold onto. The P/E of 6.22 looks cheap, but quality of earnings matters more. A Piotroski score of 5/9 says financial health is mediocre, not exceptional. This feels like a potential asset play, not a business I would bet on for growth. Graham would say: buy assets at a discount, but be prepared to wait, and ensure you are not buying a value trap. Given the negative ROCE and flat sales, I would not rush. I need evidence that capital is being deployed profitably, or that liquidation value is real. For a retail investor, the tiny market cap and lack of data make this a speculative value situation. I would keep it on a watchlist, not a core holding.

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