Manali Petrochem (MANALIPETC)

FairStock Score: 43/100 — MIXED

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

Key Financials

Strengths

• P/B of 0.98: market price ₹54.16 is below book value of ₹55.20, giving an asset-based cushion.
• Conservative balance sheet: Debt/Equity is only 0.14, reducing solvency risk in a cyclical industry.
• Piotroski F-Score of 7/9 suggests recent financial health is improving despite low historical ROE.
• Latest quarter sales of ₹247 Cr and net profit of ₹68 Cr show a sharp earnings inflection; profit growth is 297.91%.
• Promoter holding of 44.86% gives insiders meaningful skin in the game.

Concerns

• ROE of 1.14% and ROCE of 4.66% are far below a proper cost of capital; average profitability is weak.
• Petrochemical earnings are inherently cyclical; the 297.91% profit growth and PEG of 0.09 likely reflect a rebound, not durable compounding.
• Dividend yield of only 0.90% means shareholders are not paid well while waiting for the cycle to turn.
• FairStock Score of 44/100 is mixed, and the 52-week range of ₹39.13 to ₹77.60 shows meaningful price and earnings volatility.

AI Analysis

Let me look at Manali Petrochem the way any value investor would look at a chemical company. At ₹54.16, I am being asked to pay less than the ₹55.20 book value, so there is a Graham-style asset cushion. A P/B of 0.98 and a P/E of 14.16 are not expensive, and the debt-to-equity ratio of 0.14 tells me the balance sheet is conservative. That part I like. But before I get excited, Benjamin Graham would ask: what is the earning power? The historical return on equity is just 1.14%, and ROCE is 4.66%. A business earning so little on its capital is not a wonderful franchise; it is a price-taking petrochemical producer with probably no real moat. The latest quarter shows sales of ₹247 Cr and net profit of ₹68 Cr, and profit growth is stated at 297.91%. That looks spectacular, but in a cyclical industry, a single good quarter can make a mediocre business look like a gem. The PEG ratio of 0.09 is optically meaningless when the growth rate is a cyclical rebound from a low base. Piotroski F-Score of 7/9 does signal improving fundamentals, and promoter holding of 44.86% does align insiders with shareholders. Still, I am not convinced this is a long-term compounding machine. The dividend yield is only 0.90%, so I am not being paid to wait. FairStock Score of 44/100 captures my own mixed conclusion. I would treat this as a possible cyclical/asset-backed opportunity, but only if the improved profitability can be sustained long enough to lift ROE closer to a real cost of capital. Mr. Market may be right to be cautious.

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