Tirth Plastic (526675)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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