Promact Plastics (526494)

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

Key Financials

Strengths

• Reported ROCE of 25.00% and ROE of 14.77% suggest capital efficiency on a trailing basis, if those figures are reliable.
• Tiny market cap of ₹9 crore means even a modest absolute improvement in operations could have an outsized impact on per-share value.
• Share price is near the upper end of the 52-week range of ₹8.08 to ₹13.40, indicating some recent buying support or hopeful sentiment.

Concerns

• Sales growth of -97.06% and latest quarter sales of ₹0 crore indicate the business has essentially stopped generating revenue.
• Profit growth of -240.00% and latest quarter net profit of ₹-0 crore show losses; the P/E of 0.00 is meaningless.
• Piotroski F-score of 3/9 signals poor financial health and a high probability of continuing distress.
• Critical data is missing: book value, debt/equity, and promoter holding are not available, making any margin-of-safety assessment impossible.

AI Analysis

Let me begin with what every intelligent investor needs: a business he can understand, a durable competitive advantage, and a balance sheet that does not keep him awake at night. Promact Plastics fails all three tests today. Packaging is an understandable industry, but this is not a healthy operating company by any normal measure. Sales have collapsed by 97.06%, and the latest quarter shows sales of ₹0 crore and net profit of ₹-0 crore. Profit growth is minus 240%. A Piotroski F-score of 3 out of 9 reinforces the picture of financial weakness. The reported ROE of 14.77% and ROCE of 25.00% might look attractive, but I view them with deep suspicion when the earnings base has essentially disappeared; ratios without sustainable earning power are mirages. There is no dividend yield, no disclosed book value, no promoter holding figure, and no meaningful P/E. Graham would say that without assets and earnings to anchor value, the price of ₹12.97 is just a number. With a market cap of only ₹9 crore, this is a micro-cap speculation, not an investment. The price near the 52-week high of ₹13.40 tells me some hope exists, but hope is not a strategy. I need to see sales stabilize, costs controlled, positive cash flow, and honest disclosure of debt and book value. Until then, I will keep my capital elsewhere. This may one day become a turnaround, but the evidence today is insufficient and the margin of safety is absent.

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