Puretrop Fruits (530077)

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

Key Financials

Strengths

• Trades at 0.89 times book value with book value at ₹145.83, providing some downside cushion.
• Strong momentum: sales growth of 33.32% and profit growth of 177.84%, with PEG at 0.59.
• ROE of 17.36% and Piotroski F-Score of 6/9 suggest decent financial health.
• Latest quarter shows traction: sales of ₹26 Cr and net profit of ₹3 Cr.

Concerns

• Trailing P/E of 62.78 is very expensive; current earnings are only about ₹2 per share.
• Negative ROCE of -7.35% signals poor return on capital employed and questionable profit quality.
• No dividend and zero yield, so returns depend entirely on price appreciation.
• Promoter holding and debt/equity data are missing, plus a small ₹103 Cr market cap adds risk.

AI Analysis

Let me start with the balance sheet. At ₹129.50, Puretrop Fruits trades at 0.89 times book value of ₹145.83. That gives some asset cushion, and a Graham investor has to respect that. But value is not just book; it is earning power. The trailing P/E of 62.78 means I am paying over sixty-two times current profits, or roughly ₹2 per share of earnings. That is not cheap. The growth story, however, is real on paper: sales are up 33.32%, profit is up 177.84%, and the PEG ratio sits at 0.59. Return on equity of 17.36% also catches my eye. Yet when I look deeper, ROCE is -7.35%. That is a red flag. How can a business generate a positive ROE while earning a negative return on capital? It suggests profit quality may depend on non-operating items or accounting choices, not on a sound operating engine. The latest quarter, with sales of ₹26 Cr and net profit of ₹3 Cr, is encouraging, but one quarter never makes an investment. There is no dividend; shareholders rely entirely on price appreciation. Promoter holding and exact debt figures are not available—that bothers me. I cannot underwrite what I cannot see. The Piotroski score of 6/9 is acceptable, not a shout of financial strength. This looks like a fast grower, but a high P/E plus negative ROCE plus small size in agriculture—commodity prices, no pricing power—makes me wary. Graham would demand a margin of safety. I do not find that in the current earnings multiple. I would wait for either a lower price or consistent proof of capital discipline.

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