Neeraj Paper Mkt (539409)

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

Key Financials

Strengths

• Price of ₹19.52 is at a discount to book value of ₹25.42, giving a P/B of 0.77 and an asset cushion.
• Piotroski F-Score of 6/9 suggests the balance sheet is not in immediate distress.
• Reported profit growth of 140% and a PEG of 0.73 point to some earnings momentum, albeit from a low base.
• Market cap of ₹22 Cr means the stock is small, and the 52-week range of ₹15.00-₹21.45 shows limited downside recently.

Concerns

• P/E of 102.56 with latest quarter net profit of ₹0 Cr indicates very weak earnings quality.
• Sales declined 21.46%, showing the core trading business is shrinking.
• ROE of 0.66% and ROCE of 6.19% are far below acceptable levels for a value investment.
• No dividend, no promoter holding disclosure, and no debt-to-equity data create transparency and governance risks.

AI Analysis

At ₹19.52, Neeraj Paper Mkt trades below its book value of ₹25.42, so the market is not paying a premium for this business. That is the kind of starting point Graham liked, but it is only a starting point. A low P/B means little if the business cannot earn a decent return on its assets. Here, ROE is just 0.66% and ROCE is 6.19%. This is not a wonderful business; it is a modest trading and distribution company with a thin margin for error. The P/E of 102.56 confirms that earnings are very small relative to the price, and the latest quarter shows net profit of ₹0 Cr on sales of ₹42 Cr. The reported 140% profit growth looks like a low-base recovery, not a sustainable trend, especially when sales have fallen 21.46%. A PEG of 0.73 is meaningless when the earnings itself are so volatile. The Piotroski score of 6/9 gives me some comfort that the company is not in financial distress, but I cannot fully assess leverage because debt-to-equity is not disclosed. There is no dividend, and promoter holding is also not disclosed, so I have little visibility into insider alignment. I would view this as a possible asset play: a stock selling below book with a modest balance sheet score. But a trading business has no real moat, and book value can deteriorate quickly if inventories or receivables sour. I need to see stable sales, improving margins, and a clear return on capital before I could get enthusiastic. Until then, this remains a speculative cigar butt, not a compounder.

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