PG Foils (526747)

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

Key Financials

Strengths

• Trades at ₹197.75 versus book value of ₹262.32 per share, a P/B of 0.75, giving a 25% margin of safety on stated book value.
• ROCE is positive at 9.40%, indicating the underlying operating capital still earns a modest return even though equity profitability is negative.
• Latest quarter sales are ₹72 Cr with net profit of ₹0 Cr, so the business is not currently bleeding a large loss and retains an operating base.

Concerns

• Sales growth is -52.56%, showing a severe revenue collapse that threatens any earnings recovery.
• Profit growth has fallen 97.92% and ROE is -1.00%, meaning shareholder equity is earning nothing.
• Piotroski F-score of 3/9 suggests weak financial health and deteriorating fundamentals.
• No promoter holding or debt/equity data is available, so leverage, governance and balance-sheet risk cannot be fully assessed.

AI Analysis

Buffett said price is what you pay, value is what you get. At ₹197.75, PG Foils offers an apparent value gap: the stock trades at 0.75 times book value of ₹262.32 per share, and the market cap is only ₹236 Cr. But a low P/B ratio is not a free lunch. The latest quarter shows net profit of ₹0 Cr, trailing ROE is -1.00%, and profit growth has collapsed by 97.92%. Sales are down 52.56%. That is not the profile of a growing franchise; that is a business under stress. The Piotroski F-score of 3/9 reinforces my caution: the balance sheet and operations are deteriorating, not improving. ROCE at 9.40% is respectable for an asset-heavy aluminium player, but it does not signal a wide moat, and with zero earnings, the equity is not producing value for shareholders. There is no dividend, no promoter holding information, and the P/E is meaningless at zero earnings. In Graham's words, this may be a cigar butt: a cheap stock with one puff left. But in a cyclical industry, book value can erode quickly if aluminium prices remain weak or assets need impairment. I cannot rely on a P/B discount alone. The 52-week range ₹165.50-294.00 shows the market is indecisive. I would need to see sales stabilise, positive net profit, and cash flow improvement before calling this a clear buy. For now, it is a possible asset play or turnaround situation, not a wonderful business. I will keep it in the 'too hard' pile until the numbers prove a recovery.

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