Phoenix Township (537839)

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

Key Financials

Strengths

• Book value of ₹111.24 provides some asset support, with P/B at 1.32 not excessive on surface.
• Latest quarter is profitable: sales of ₹9 Cr and net profit of ₹1 Cr.
• Historical ROE of 23.80% suggests past efficiency in generating returns on equity.
• Price is well above the 52-week low of ₹71.30, indicating some market interest.

Concerns

• Sales growth is -16.32% and profit growth is -66.97%, showing clear deterioration.
• ROCE of only 1.55% versus ROE of 23.80% implies operating performance is weak and earnings may be flattered.
• P/E of 76.95 is expensive for a company with falling earnings.
• Piotroski F-score of 3/9 signals weak financial health; debt/equity is undisclosed.

AI Analysis

Phoenix Township presents a textbook caution for value investors. At ₹146.95, the market cap is ₹217 crore, but trailing earnings are thin and shrinking. The P/E of 76.95 would be hard to justify even for a high-growth business; here, sales fell 16.32% and profits collapsed 66.97%. Graham would ask what the owner will earn over the next decade, not what the stock has done. The ROE of 23.80% looks strong, but the ROCE of only 1.55% tells me operating returns are poor. That gap suggests the reported book value and earnings may be flattered by non-operating items. A Piotroski F-score of 3 out of 9 reinforces the fear that financial health is deteriorating. Book value of ₹111.24 gives some support, and the P/B of 1.32 is not extreme, but I buy businesses, not statistical bargains. The dividend yield of 0.25% is meaningless to an owner. Hotels are cyclical, capital intensive, and have limited pricing power unless they own unique property. Without knowing debt/equity, I cannot measure the balance-sheet risk properly. The latest quarter, with sales of ₹9 crore and net profit of ₹1 crore, is profitable, but at this valuation the market is capitalizing a tiny profit stream at a very high multiple. The 52-week range of ₹71.30 to ₹214.40 shows Mr. Market is emotional. I need a margin of safety: either a much lower price, or evidence that hotel occupancy and revenue are recovering and operating capital returns are improving. Until then, this is a cyclical with deteriorating fundamentals, not a compounder.

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