MPS (MPSLTD)
Slow GrowerFairStock Score: 56/100 — STEADY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 1/1
Key Financials
| Current Price | ₹2,808.7 |
| Market Cap | ₹4,767.92 Cr |
| P/E Ratio | 25.32 |
| ROCE | 40.94% |
| ROE | 31.88% |
| Dividend Yield | 2.89% |
| Profit Growth | 42.47% |
| Debt/Equity | 0.1 |
| Sales Growth | 22.39% |
| Promoter Holding | 68.34% |
| 52-Week Range | ₹1,336.1 — ₹2,980 |
| Sector | Other Consumer Services |
| Book Value | ₹351.41 |
Strengths
- Strong capital efficiency with ROE of 31.88% and ROCE of 40.94%
- Negligible leverage with debt-to-equity of 0.02
- High promoter holding of 68.34% aligns management with shareholders
- Attractive dividend yield of 5.51% provides income support
- Reasonable P/E of 15.67 despite high returns and low debt
Concerns
- Sales growth is negative at -2.08% and profit growth is nearly flat at 0.22%
- P/B of 8.17 is very expensive relative to book value of ₹202.84
- PEG of 71.23 suggests the valuation is not supported by growth
- FairStock Score of 37/100 and Piotroski F-Score of 6/9 indicate mixed fundamentals
AI Analysis
Looking at MPS, I first ask what the business earns on capital. The numbers here are impressive: return on equity at 31.88% and return on capital employed at 40.94%, with a debt-to-equity of just 0.02. That is the kind of capital-light franchise I like, and 68.34% promoter holding means owners' interests are aligned. The dividend yield of 5.51% gives me a tangible return while I wait. But a great business must also grow, and there I find the problem. Sales growth is minus 2.08% and profit growth is 0.22%. Latest quarter sales of ₹182 Cr and net profit of ₹36 Cr suggest a healthy margin, but the top line is stagnant. In the words of Graham, the price you pay determines your return. At ₹1,657.15, the P/E is 15.67, which is not expensive for a high-ROE business, but the P/B of 8.17 tells me I am paying a large premium over book value of ₹202.84. The PEG ratio of 71.23 is a red flag: at this level of growth, the earnings multiple is not compensated. The stock has fallen from ₹2,980 to ₹1,657, so the market has already repriced it, but I need evidence of a return to growth before I commit. The Piotroski F-score of 6/9 is passable, but not outstanding. This is not a business to buy blindly just because it once traded higher. I would need either a lower entry price or a clear catalyst in revenue growth before I act. Until then, the dividend is attractive, but I do not confuse a good business with a good investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer