National Perox. (544205)

FairStock Score: 9/100 — RISKY

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

Key Financials

Strengths

• Book value of ₹628.81 per share provides tangible asset backing, with price at 1.65 times book.
• Sales grew 11.15% year-on-year, and the latest quarter showed a positive net profit of ₹2 Cr.
• Piotroski F-score of 7/9 indicates recent improvements in profitability, leverage, and operational efficiency.
• ROCE is positive at 0.20%, showing capital employed is at least marginally turning productive after losses.

Concerns

• ROE is negative at -0.95%, meaning shareholders' equity is not earning an acceptable return.
• P/E is 0.00 and dividend yield is 0.00%, so there is no earnings yield or income support for the valuation.
• Profit growth of 257% is from a near-zero base and is not evidence of durable earnings power.
• The stock has tripled from its 52-week low and trades near ₹1,038.25, leaving little margin of safety.

AI Analysis

Let me start with what I know: National Perox is a commodity chemical producer, and commodity chemistry is rarely a place where I find durable moats. The share price is ₹1,038.25, the market cap is ₹606 Cr, but the trailing P/E is zero because the company has no meaningful earnings. A zero P/E and a negative ROE of -0.95% tell me that this is not a business generating shareholder wealth today. The latest quarter’s net profit of ₹2 Cr on sales of ₹69 Cr is only a 2.9% margin—fragile, not evidence of franchise strength. Sales grew 11.15%, and reported profit growth of 257% sounds impressive, but it comes off a base near zero; I don’t pay up for percentages from nothing. Book value is ₹628.81, so I am being asked to pay 1.65 times book for a business earning a negative return on that book. Graham would say price is what you pay, value is what you get; here, value is not yet visible. I do see positives: the Piotroski F-score of 7/9 suggests balance-sheet and operating measures are improving, and ROCE, though tiny at 0.20%, is positive. That hints at a possible turnaround. But a turnaround is only an investment when it can be proven over time with consistently rising ROE and strong cash generation. At this price, near the 52-week high of ₹1,038.25, there is no margin of safety. This is a stock for speculators, not for patient value investors. I will watch it, but I will not buy it today.

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