Pee Cee Cosma (524136)

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

Key Financials

Strengths

• High ROE of 22.55% and ROCE of 25.73% show strong capital efficiency.
• Sales growth of 22.47% indicates healthy demand for its household products.
• Piotroski F-Score of 7/9 suggests solid financial fundamentals.
• P/E of 11.31 and PEG of 0.86 offer a reasonably attractive valuation if growth sustains.
• Latest quarter is profitable with ₹42 Cr sales and ₹3 Cr net profit.

Concerns

• Profit growth of only 3.74% badly lags sales growth of 22.47%, pointing to margin compression.
• Debt/Equity is N/A and promoter holding is undisclosed, leaving key balance-sheet and governance gaps.
• Market cap of ₹117 Cr is very small, which can mean low liquidity and high volatility.
• Dividend yield of 0.86% provides little income support while waiting for growth to show up in profits.

AI Analysis

At ₹443, Pee Cee Cosma is a ₹117 Cr household-products micro-cap. The P/E of 11.31 and P/B of 2.51 are not demanding. More important are ROE of 22.55% and ROCE of 25.73%, which indicate a business that generates attractive returns on capital. That is the first thing I ask. The Piotroski F-score of 7/9 also points to sound fundamentals. Sales grew 22.47%, so demand for its products is clearly there. But profit is growing only 3.74%. That bothers me. In Graham's language, a dollar of sales is not a dollar of earnings. If revenue expands at 22% and net profit crawls, margins are being squeezed by costs, competition, or reinvestment. The PEG ratio of 0.86 is comforting only if earnings growth accelerates to match sales. The latest quarter's ₹42 Cr sales and ₹3 Cr net profit annualize to roughly ₹12 Cr — enough to keep the stock reasonably priced. Still, with a market cap of just ₹117 Cr, liquidity and volatility are real concerns. Debt/Equity is shown as N/A, so I cannot confidently call the balance sheet clean. Promoter holding is also undisclosed, and the FairStock score flags insufficient data. Household products can build lasting consumer loyalty, but I see no proven moat from these numbers. This is a decent small-compounding candidate, not a wide-moat stalwart. I want to see operating leverage convert high sales growth into profit growth. Until then, I would keep a small position only if bought below intrinsic value, and I would monitor every quarter for margin stability.

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