Parker Agrochem (524628)

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

Key Financials

Strengths

• Trailing P/E of 12.13 and PEG of 0.15 are optically cheap if the recent profit growth is sustainable
• Reported ROE of 18.46% suggests some return on book equity, though ROCE contradicts this
• Price is well above the 52-week low of ₹13.31, showing recent buying interest
• Piotroski F-Score of 5/9 indicates moderate financial health, not outright distress

Concerns

• Sales collapsed by 97.27%, and the latest quarter shows only ₹1 crore sales with ₹0 crore net profit
• ROCE is negative at -1.42%, signaling poor operational returns on capital
• P/B of 2.32 is expensive for a tiny trading-distribution business with almost no revenue
• Zero dividend yield and undisclosed promoter holding reduce transparency and shareholder reward

AI Analysis

Let's look at Parker Agrochem with Graham's eyes. A ₹9 crore market-cap microcap in trading and distribution. The first thing I see is collapse: sales down 97.27%. The latest quarter shows just ₹1 crore of sales and ₹0 crore net profit. A business generating no meaningful profit is not a business; it's an option. The declared P/E of 12.13 and PEG of 0.15 look seductive, but they are built on an 83.33% profit increase from a tiny base—that is base-effect arithmetic, not durable economics. ROE of 18.46% sounds attractive, yet ROCE is -1.42%. That contradiction tells me the equity return is not backed by sound operating capital use. Price-to-book of 2.32 means I am paying more than two and a half times net asset value for a distributor with no moat, no pricing power, and vanishing revenue. The dividend yield is zero; no cash comes back to me while I wait. With promoter holding not disclosed and the FairStock score insufficient, I lack the three things Graham demanded: an honest management, a stable earnings record, and a margin of safety. At ₹18.37, near the middle of its ₹13.31–₹24.00 range, there is no compelling margin of safety. If the business truly turns—if sales recover quarter after quarter and ROCE turns positive—then the low P/E and PEG could become interesting. But I cannot invest on 'could'. I would keep this on a watch list, not in my portfolio. Better to miss a speculative recovery than to lose capital in a company whose operations have nearly ceased.

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