Phoenix Intl. (526481)

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

Key Financials

Strengths

• Price-to-book of 0.22 means the market is pricing the stock at a 78% discount to ₹217.93 book value per share.
• Sales growth of 12.67% shows some revenue momentum, even if profitability has lagged.
• The ₹80 Cr market cap sits far below the stated asset base, providing a potential margin of safety if book value is real.
• Trading near the top of its 52-week range (₹25.25-₹48.99) suggests the market is beginning to recognise value.

Concerns

• ROE of 0.78% and ROCE of 2.47% are far below any reasonable cost of capital, indicating poor earning power.
• Profit growth has declined by 71.62%, and latest quarter net profit is effectively zero, so the business is not generating meaningful returns.
• Piotroski F-Score of 4/9 points to weak overall financial health and poor fundamentals.
• No dividend and undisclosed promoter holding make it harder to wait for value realisation.

AI Analysis

At ₹47.93, Phoenix Intl. is the kind of balance sheet puzzle Graham would enjoy, but it fails his earnings test. The market values the entire company at ₹80 Cr, yet the stated book value is ₹217.93 per share. That means I am paying only 22 paise for every rupee of net assets. On price-to-book alone, the margin of safety looks enormous. But investors must remember that an asset is only worth what it can earn or be sold for. Right now, this business earns almost nothing. ROE is just 0.78% and ROCE is 2.47% — both far below what I could get in a fixed deposit. The latest quarter shows revenue of ₹7 Cr and net profit close to ₹0 Cr. Reported profit growth has collapsed by 71.62% despite a 12.67% rise in sales, so whatever expansion is happening is not translating into shareholder earnings. The Piotroski F-score of 4 out of 9 signals poor financial health. There is no dividend, so I cannot wait for income while management figures things out. The P/E of 19.96 and PEG of 1.58 are misleading because earnings have dropped sharply. I would need hard evidence on what makes up that book value, whether those assets are productive or stranded, and whether management has a plan to unlock value—through sale, merger, or liquidation. The 52-week range ₹25.25 to ₹48.99 tells me the market has already noticed the asset story. But a value investor cannot rely on hope; I need a catalyst. This is an asset play, not a compounding machine. I would only buy at a meaningful discount to realisable net asset value, and only after governance and debt are clarified.

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