Parmax Pharma (540359)

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

Key Financials

Strengths

• Operates in the pharmaceutical sector with latest-quarter sales of ₹4 Cr, so there is a revenue base, albeit shrinking.
• Current price of ₹37.85 is below the 52-week high of ₹42.00, indicating the market is still willing to trade the stock.
• The company does not pay a dividend, so there is no cash outflow on that front, though it is not a positive given the losses.
• Small market cap of ₹14 Cr leaves room for a niche player to potentially revive operations, but that is speculative, not investment.

Concerns

• Latest quarter net loss of ₹1 Cr on ₹4 Cr sales; P/E of 0.00 is meaningless due to negative earnings.
• Sales growth of -31.05% and profit growth of -87.18% show severe deterioration.
• Piotroski F-Score of 2/9 and ROCE of -12.45% indicate poor financial health and capital destruction.
• No book value, debt/equity, promoter holding, or dividend data available for a proper Graham-style valuation.

AI Analysis

At ₹37.85, Parmax Pharma carries a market cap of just ₹14 crore. As Graham would say, price is what you pay; value is what you get. Here I struggle to find value. The P/E of 0.00 is not a bargain signal—it is a red flag when the latest quarter shows a net loss of ₹1 crore on sales of ₹4 crore. Sales are shrinking 31.05% year-on-year, and profit growth has collapsed by 87.18%. A Piotroski F-Score of 2 out of 9 tells me the financial health is poor. ROCE of -12.45% confirms the business is destroying capital, not compounding it. The extraordinary ROE of 5105.74% looks like an artifact of a tiny equity base, not an economic moat. Without book value, debt/equity, or promoter holding data, I cannot apply any margin-of-safety calculation. No dividend means I am not paid to wait. This is a microcap in an industry that can be good, but this specific enterprise has no demonstrated competitive advantage. Benjamin Graham taught that adequate analysis and satisfactory return are necessary; here there is inadequate information and unsatisfactory economics. A 52-week range of ₹22.60 to ₹42.00 shows price volatility, but volatility is not risk. The risk is permanent capital loss from a business with negative earnings, falling sales, and a 2/9 Piotroski score. I would not buy a turnaround until I see actual proof of stabilisation: positive operating cash flow, a recovery in sales, and a return to profitability. Until then, this is a pass.

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