Tirth Plastic (526675)

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

Key Financials

Strengths

• Reported profit growth of 700% shows earnings momentum, though from a small base.
• Piotroski F-Score of 6/9 suggests some improvement in financial health.
• ROE of 9.75% is positive and book value per share of ₹5.71 provides a tangible asset base.
• Price is at the upper end of its 52-week range, indicating strong market demand for the stock.

Concerns

• P/E of 46.33 and P/B of 6.37 are extremely rich for a small trading and distribution business with no apparent moat.
• ROCE of 0.40% means operations generate almost no return on capital employed; latest quarter net profit is ₹0 Cr.
• Sales growth is 0.00% and dividend yield is 0.00%, offering no fundamental growth or income support.
• Promoter holding and debt-equity details are not disclosed, leaving a serious transparency gap for a micro-cap.

AI Analysis

Tirth Plastic is exactly the kind of stock that tempts a speculator but should worry a value investor. In the last year the price has run from ₹12.11 to ₹36.40, and reported profit growth is 700%. But behind those headline numbers, I see a business that is still small, flat, and unproven. This is a trading and distribution company with a market cap of ₹16 Cr, no sales growth, and a latest quarter showing ₹3 Cr revenue but no net profit. A 700% profit increase with a zero in the latest quarter tells me the earnings are not yet real or sustainable. The return on equity of 9.75% is modest; the return on capital employed of just 0.40% is deeply concerning. Any business that earns less than 1% on capital has little economic value, regardless of how many shares trade. Price-to-book of 6.37 means I am paying ₹36.40 for ₹5.71 of book value. P/E of 46.33 leaves no room for error. The PEG of 0.07 looks cheap only because the earnings base is minuscule; that is a statistical illusion, not a margin of safety. The Piotroski score of 6/9 is a mildly positive sign, but it cannot cure the absence of a durable moat, pricing power, or dividend. Promoter holding is not available, so I cannot judge whether the people running this business have their own money at stake. In Graham's language, price is what you pay, value is what you get. At ₹36.40, I get flat revenue, negligible returns on capital, and zero dividend. That is not value; it is hope. As a value investor, I prefer to wait for a better price or for evidence of real growth in sales and earnings. Tirth Plastic fails my margin of safety test.

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