Parth Electrical (PARTH)

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

Key Financials

Strengths

• ROCE of 33.26% signals strong capital efficiency
• Profit growth of 48.06% far outpacing sales growth of 15.02%
• Piotroski F-score of 7/9 indicates solid financial health
• Promoter holding of 62.57% aligns management with minority shareholders
• PEG of 0.95 suggests reasonable valuation relative to growth

Concerns

• P/E of 29.85 leaves little margin of safety at current price
• Zero dividend means no cash return while waiting for growth
• Missing book value, ROE, and debt/equity data limits proper fundamental analysis
• Wide 52-week range of ₹238 to ₹535 shows high price volatility

AI Analysis

I am drawn to businesses that couple a decent moat with honest capital allocation. Parth Electrical shows the earnings power I respect: despite a modest 15.02% sales growth, profits jumped 48.06% — the hallmark of operating leverage and pricing discipline. ROCE of 33.26% is the kind of return on capital that can compound shareholder wealth over time, if maintained. The high 62.57% promoter holding keeps interests aligned, and the Piotroski F-score of 7 suggests a financially improving business. That said, I never buy hope at any price. At ₹338.85, the P/E of 29.85 is not what Graham would call bargain-basement. The PEG of 0.95 helps a bit, but it assumes the recent profit momentum continues. The lack of reported book value, ROE, and debt/equity bothers me; without those figures, I cannot properly judge the margin of safety. Also, the zero dividend means the only return is capital appreciation, and the wide 52-week range of ₹238 to ₹535 reminds me how quickly sentiment moves in small-caps. The latest quarter's net profit of ₹6 Cr on ₹80 Cr sales translates to a 7.5% net margin, respectable for electrical equipment but susceptible to input cost swings. If the company can keep ROCE above 30%, keep converting profit growth into cash, and eventually provide fuller balance-sheet disclosures, I would be more willing to call it a wonderful business. For now, it is a fast grower with excellent operating metrics but a price that demands flawless execution. I would wait for either a lower entry point or more proof over the next few quarters before committing capital.

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