Marathon Nextgen (MARATHON)

FairStock Score: 59/100 — STEADY

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

Key Financials

Strengths

• Minimal leverage with debt/equity of 0.03 gives the balance sheet a strong foundation
• ROE of 16.92% is respectable, especially with almost no debt
• Promoter holding of 55.92% aligns owner interest with minority shareholders
• P/E of 13.70 is not extreme, so the stock is not purely a speculative multiple

Concerns

• Profit growth is -29.34% while sales growth is just 1.26%, showing eroding momentum
• Piotroski F-Score of 4/9 and FairStock Score of 34/100 flag deteriorating financial health
• PEG of 10.87 and P/B of 3.29 against book value of ₹149.36 leave a thin margin of safety
• Dividend yield of 0.23% offers negligible income support

AI Analysis

Marathon Nextgen illustrates the trap of judging a business by a single P/E. At ₹491.55, the stock trades at 13.7 times trailing earnings. That looks reasonable, but the earnings behind that multiple are shrinking: profit is down 29.34% while sales grew just 1.26%. For a residential and commercial real estate developer, this is not a surprise; property earnings are cyclical and lumpy, not like a toothpaste franchise. There is no durable consumer moat; pricing power depends on project execution and market demand. The balance sheet is genuinely comfortable—debt/equity is only 0.03, and promoter holding is 55.92%, so the owners remain committed. ROE of 16.92% is respectable, but at 3.29 times book value, with book value of ₹149.36, I am paying a large premium for a business whose current momentum is negative. The Piotroski F-score of 4/9 and a FairStock score of 34/100 reinforce my caution: financial health has deteriorated and the stock is flagged risky. The PEG ratio of 10.87 is a warning that the market has priced in growth that is nowhere visible. Dividend yield of 0.23% offers little protection. The latest quarter's net profit of ₹33 Cr on ₹125 Cr of sales looks decent, but one quarter does not establish a trend in a project-based business. Graham would demand a margin of safety; I do not see one here. Marathon may be worth watching for a patient buyer, but not at this price. I prefer to wait until sales growth resumes, profits stabilise, or the valuation drops to a level that compensates for the cyclical risk. This is a cyclical, not a cigar-butt or a compounder.

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