Pansari Develop. (PANSARI)

FairStock Score: 38/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 74.69% and profit growth of 100.95% show strong recent momentum.
• Piotroski F-Score of 7/9 suggests decent financial health and no obvious accounting red flags.
• Promoter holding of 73.88% aligns promoter interests with minority shareholders.
• Debt/Equity of 0.48 is moderate and manageable for a real estate developer.
• PEG of 0.35 makes the growth appear inexpensive if it is sustainable.

Concerns

• ROCE is only 6.38% and ROE is not reported, indicating weak or unproven capital efficiency.
• P/E of 31.04 and P/B of 3.69 are rich with no dividend yield to cushion returns.
• Latest quarter profit of ₹4 Cr annualizes to roughly ₹16 Cr, making the market cap of ₹529 Cr about 33 times run-rate earnings.
• Real estate is cyclical, and the high growth rates may not persist; FairStock Score of 45/100 is mixed.

AI Analysis

My first reaction is that this is a company growing at a speed I rarely chase: sales up 74.69% and profits up 100.95%. The latest quarter, ₹37 Cr in sales and ₹4 Cr in profit, shows momentum. A PEG of 0.35 is inviting, and promoter holding at 73.88% means the family's wealth is tied to the business. The Piotroski score of 7/9 also tells me the financial statements are not showing obvious red flags, with debt/equity at 0.48. But I cannot ignore the economics underneath. ROCE is only 6.38%, and ROE is not reported. For a company trading at 31 times earnings and 3.69 times book, I need a business that earns well above its cost of capital. This one does not seem to. Real estate in India is a cyclical, capital-hungry game, and this is a small ₹529 Cr company with a 52-week range of ₹231 to ₹387. That kind of price swing tells me sentiment, not intrinsic value, drives the stock. No dividend means the entire return depends on price appreciation. If I pay ₹299.90 today, I am relying on the 74.69% sales growth and 100.95% profit growth to continue. But a single quarter of ₹4 Cr profit annualizes to only about ₹16 Cr, which makes the current price about 33 times run-rate earnings. There is little margin of safety for a cyclical developer at the peak of a good cycle. As Graham would say, price is what you pay, value is what you get. The numbers show a fast-growing small developer, but not a proven wealth compounder. I would keep it on a watchlist, not buy it at this price.

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