Nicco Parks (526721)

FairStock Score: 6/100 — RISKY

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

Key Financials

Strengths

• High historical ROE of 31.39% and ROCE of 28.15% indicate strong capital efficiency in normal operating years.
• Despite the severe sales drop, the latest quarter is still profitable at ₹1 crore net profit, showing it has not slipped into losses.
• Dividend yield of 1.73% offers a modest income cushion while waiting for recovery.
• Price at the 52-week high suggests some market confidence in the franchise's ability to rebound.

Concerns

• Sales growth of -30.20% and profit growth of -81.07% show a sharp collapse in current earnings power.
• Valuation is expensive: P/E of 44.53 and P/B of 8.29 are difficult to justify when quarterly net profit is just ₹1 crore.
• Piotroski F-Score of 3/9 and FairStock Score of 6/100 point to weak financial health and elevated risk.
• Missing debt/equity and promoter holding data limits the ability to assess balance-sheet safety and governance.

AI Analysis

Let me look at Nicco Parks the way I look at any business: what does it earn, how reliably, and what am I paying? The first numbers that jump out are ROE of 31.39% and ROCE of 28.15%. Those are wonderful returns, but they are backward-looking. The latest quarter tells a different story: sales of just ₹13 crore and net profit of only ₹1 crore. Sales have collapsed 30.20% and profit has plunged 81.07%. That is not the sign of a stalwart; it is a cyclical business in a downcycle. A P/E of 44.53 on depressed earnings, and a price-to-book of 8.29 against a book value of ₹17.57, means the market is already pricing in a full recovery. I cannot pay high multiples for a currently shrinking earnings base. The Piotroski F-Score of 3/9 raises red flags about financial health, and the FairStock Score of 6/100 reinforces the risk. The dividend yield of 1.73% gives some comfort, but it cannot compensate for a potential earnings decline. Amusement parks, despite their entertainment appeal, are capital-intensive and discretionary; they suffer in downturns and require constant maintenance. We have no debt/equity or promoter holding data, so I cannot fully assess balance-sheet safety or promoter alignment. If the company returns to positive sales growth and rebuilds profits toward historical levels, the high ROE may justify a premium. But at the 52-week high of ₹145.60, I am too late. As Graham said, price is what you pay; value is what you get. Here, the value is uncertain and the price is not attractive. I would wait for a margin of safety and evidence of a durable turnaround before committing capital.

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