Prospect Consum. (543814)

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

Key Financials

Strengths

• Trailing P/E of 11.96 with 87.27% profit growth gives a PEG of 0.11, inexpensive if growth persists.
• Piotroski F-Score of 7/9 suggests decent financial health across profitability, leverage, and efficiency.
• Latest quarter sales of ₹30 Cr and net profit of ₹2 Cr show strong operating traction.
• Sales growth of 125.32% reflects robust demand momentum.
• ROCE of 14.67% indicates acceptable capital productivity.

Concerns

• No book value, debt/equity, ROE, or promoter holding data — limited ability to judge balance-sheet risk and owner alignment.
• Zero dividend means no cash return; the entire thesis rests on continued growth and multiple expansion.
• Agricultural products are often commodity-like, with limited pricing power and a weak structural moat.
• Trading near 52-week high of ₹147.55 in a small-cap with ₹83 Cr market cap creates liquidity and volatility risk.

AI Analysis

At ₹147.55, Prospect Consum. is a ₹83 crore micro-cap that has nearly tripled from its 52-week low of ₹43.01. The first lesson is discipline: a wonderful business must be bought at a sensible price. Here the trailing P/E is 11.96, and with profit growth of 87.27%, the PEG is just 0.11 — statistically cheap if that growth is durable. But I must resist statistical seduction. The industry is 'Other Agricultural Products', which usually means a commodity-like operation with limited pricing power and no deep moat. ROCE of 14.67% is decent, and a Piotroski F-score of 7/9 indicates reasonable financial health, but without book value, debt/equity, return on equity, or promoter holding data, I cannot perform the margin-of-safety calculation that Graham demands. The latest quarter shows sales of ₹30 crore and net profit of ₹2 crore — a healthy margin, but one quarter proves nothing. Sales growth of 125.32% and profit growth of 87.27% sound wonderful, but micro-caps in agriculture often grow from a small base, and the 52-week price action suggests the market already knows the good news. There is zero dividend, so the only return to shareholders must come from compounding or a higher multiple. For a fast grower, that is acceptable only if the balance sheet is transparent and the moat is widening. Right now, too much is hidden. I would not buy blindly; I would demand full disclosure, watch quarterly consistency, and wait for a better price if any stumble appears.

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