Parsvnath Devl. (PARSVNATH)

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

Key Financials

Strengths

• Promoter holding is 50.09%, providing some alignment between management and public shareholders.
• Business still generates meaningful revenue: latest quarter sales of ₹61 Cr, with sales growth of 4.81%.
• Book value is positive at ₹1.13 per share, though thin.
• The stock trades well above its 52-week low of ₹1.49, indicating some market participants see recovery optionality.

Concerns

• Latest quarter net loss of ₹149 Cr exceeds quarterly sales of ₹61 Cr, implying severe cash burn.
• Profitability is deeply negative: P/E is 0.00, ROE is -340.86%, and ROCE is -0.98%.
• At ₹8.33, the price is 7.37 times book value of ₹1.13 for a loss-making company, leaving no margin of safety.
• Piotroski F-Score of 3/9 and Debt/Equity of N/A signal weak financial health and inadequate disclosure on leverage.

AI Analysis

Parsvnath Devl. fails the first test I ask of any business: it must be able to generate earnings with some predictability. The latest quarter had sales of ₹61 Cr, but a net loss of ₹149 Cr — the company lost more than two-and-a-half rupees for every rupee of revenue. With P/E effectively zero and ROE at -340.86%, there is no earnings power to value, only ongoing destruction of book value. Book value per share stands at just ₹1.13, yet I am asked to pay ₹8.33, or 7.37 times book. That is not a margin of safety; it is a valuation built on hope. The Piotroski F-Score of 3/9, negative ROCE of -0.98%, and profit growth of -54.84% confirm a deteriorating financial picture. Positive sales growth of 4.81% is meaningless if it cannot flow to profits. Promoter holding of 50.09% at least aligns ownership, but it does not compensate for an equity base being eroded and no dividend yield. In Graham's words, the market may be a voting machine in the short run; but this balance sheet is voting no. The 52-week range from ₹1.49 to ₹18.75 tells me this is a speculative instrument, not a business I can analyse with confidence. Without evidence of debt repayment, asset monetisation, or a credible path to positive earnings, I cannot call it a value investment. It is a possible turnaround, but only if management demonstrates real financial repair. I will wait on the sidelines.

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