City Pulse Multi (542727)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 suggests acceptable financial health across profitability, leverage, and efficiency metrics.
• Net profit growth of 29.31% shows some ability to protect earnings despite lower sales.
• Positive ROCE of 1.66% indicates the company is generating some return on capital employed, though weak.

Concerns

• P/E of 1,000 and PEG of 34.12 make the stock absurdly expensive relative to earnings and growth.
• Sales declined 8.07%, and latest quarterly revenue is only ₹1 crore, so the business is extremely small and shrinking.
• Quarterly net profit equals revenue at ₹1 crore; such 100% margins are unlikely to be sustainable and may include one-offs.
• No dividend means investors rely entirely on price appreciation, while the quoted price of ₹307 sits below the stated 52-week range of ₹1955.70–₹3289.95, making the data unreliable.

AI Analysis

Let me start with the obvious: at ₹307 with a market cap of ₹327 crore and a P/E of 1,000, this is not a business I can call an investment. Benjamin Graham taught me that price is what you pay, value is what you get; here the market is paying a century of earnings for a franchise with ₹1 crore of quarterly sales. That is speculation, not investing. The company is in speciality retail, a sector where competitive advantage must be earned through scale, brand, and cost control. Yet sales shrank 8.07%, while profit grew 29.31% — profit growth without revenue growth is suspect, especially when quarterly net profit equals sales at ₹1 crore. That implies either extraordinary margins or one-off gains, not durable earning power. ROCE is only 1.66%, meaning the business earns almost nothing on capital employed. There is no dividend, so shareholders depend entirely on price appreciation. With a PEG ratio of 34.12, even the profit growth is grotesquely overpriced. The price quoted is below the stated 52-week range, which tells me the data may have undergone a split or correction; I cannot build a valuation on unreliable figures. Piotroski F-score of 6/9 suggests some financial health, but a 1,000 P/E makes that irrelevant. In Warren Buffett's terms, this is a cigar butt with a very high asking price. I need margin of safety. There is none. I will pass.

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