Prithvi Exchange (531688)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹318.3 |
| Market Cap | ₹262.59 Cr |
| P/E Ratio | 33.19 |
| ROCE | 23.84% |
| ROE | 6.35% |
| Dividend Yield | 1.57% |
| Profit Growth | 0% |
| Debt/Equity | — |
| Sales Growth | 27.38% |
| 52-Week Range | ₹91.25 — ₹318.3 |
| Sector | Finance |
| Book Value | ₹62.52 |
Strengths
- Revenue growth of 27.38% shows the business is expanding its exchange volumes/top line.
- ROCE of 23.84% suggests decent capital efficiency on an operating capital basis.
- Dividend yield of 1.57% returns some cash to shareholders.
- Latest quarter sales of ₹913 crore indicate significant throughput in the financial services business.
Concerns
- Profit growth is 0.00% despite 27.38% sales growth; latest quarter ₹913 crore sales led to only ₹1 crore net profit, indicating very thin margins.
- ROE of 6.35% is weak, while P/E of 33.19 and P/B of 5.09 versus book value ₹62.52 leave no margin of safety.
- Piotroski F-score of 4/9 signals deteriorating fundamentals.
- Stock has risen from ₹91.25 to ₹318.30, so much of the good news appears priced in.
AI Analysis
Prithvi Exchange sells at ₹318.30, a market cap of ₹263 crore. For that price, I get a business earning a 6.35% return on equity. Benjamin Graham taught me that price is what you pay, value is what you get. At 33 times earnings, I am paying a rich multiple for a company whose profit growth is zero. The latest quarter reinforces this: sales of ₹913 crore produced net profit of just ₹1 crore. That is a razor-thin margin, and no amount of revenue growth can compensate if the bottom line does not follow. The advance from ₹91.25 to ₹318.30 has been spectacular, but the stock market is not always rational; it can reward hope for a long time. Book value is only ₹62.52, so I am paying about 5 times book for an ROE that is far lower than what I could earn in a simple index fund. ROCE at 23.84% looks good, but for a financial intermediary I care about return on equity and consistency. The Piotroski score of 4/9 warns of underlying weakness, and the dividend yield of 1.57% gives me little income while I wait. The PEG ratio of 1.21 assumes profit growth ahead, yet the latest numbers show no profit growth. This is a cyclical-looking exchange business, not a durable franchise. In Buffett's terms, I want a wonderful business at a fair price, not an ordinary business at a wonderful price. At ₹318, Prithvi Exchange is closer to the latter. I would pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer