Ashish Polyplast (530429)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 signals improving fundamentals relative to a year ago.
• Profit growth of 650% indicates a low-base earnings recovery; if maintained, it could transform the small profit base.
• PEG of 0.23 suggests the market believes growth will be high enough to justify the P/E over time.

Concerns

• P/E of 152.71 and P/B of 4.45 are far above levels justified by 1.01% ROE and 5.09% ROCE.
• Sales declined 20.81%, and latest quarter net profit is ₹0 Cr, calling earnings sustainability into question.
• No dividend payout, and missing promoter holding and debt-equity data reduce transparency.
• Stock has already rallied from ₹26.15 to ₹88.01, leaving little margin of safety.

AI Analysis

I will not pretend this is the kind of business I want to own. Ashish Polyplast sells at ₹88, giving a market cap of ₹30 crore, yet the company earns only 1.01% on equity and 5.09% on capital employed. Those are mediocre returns for a plastic products manufacturer. The price-to-book value is 4.45, while book value per share is just ₹19.77—so I am paying a huge premium for assets that are not generating an acceptable return. The latest quarter says a lot: sales of ₹4 crore and net profit of zero. The 650% profit growth looks impressive at first, but with a P/E of 152.71, the market is already paying for years of perfection. A PEG of 0.23 only makes sense if that 650% growth is sustainable, and nothing in the declining sales trend suggests that. Sales are down 20.81%, and the company pays no dividend. The Piotroski score of 6/9 is a mild positive, showing some financial signs improving, but it is not enough to offset a business with 5.09% ROCE. I also notice missing data: promoter holding and debt-equity are not available. For a prudent investor, lack of transparency at a 30-crore market cap is a red flag, not a reason to buy. The stock has moved from ₹26.15 to ₹88.01, so the market is already excited. At this price, the margin of safety is absent. This may be a turnaround in progress, but Graham would wait for confirmation: higher sales, real profits, and a return on capital well above current levels. I would rather watch from the sidelines than pay 152 times earnings for a business that just earned zero profit in its latest quarter. Patience is the better trade.

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