Patel Retail (PATELRMART)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• Sales and profit growth are strong: 35.46% sales growth and 95.76% profit growth, supported by a low PEG of 0.25.
• Balance sheet is reasonable with debt/equity of 0.34 and ROCE of 17.33%.
• Piotroski F-Score of 7/9 suggests decent financial health.
• High promoter holding of 70% aligns owner interests with minority shareholders.
• Latest quarter sales of ₹309 crore and net profit of ₹12 crore show continued momentum.

Concerns

• ROE is not available, making it difficult to assess true equity profitability.
• Zero dividend yield means investors rely entirely on growth and future capital allocation.
• Retail is highly competitive, and no clear moat is visible from the numbers.
• 95.76% profit growth is likely unsustainable; P/E of 16.43 may look higher if growth decelerates.

AI Analysis

At first glance, Patel Retail looks like the sort of compounder I can respect. The market cap is ₹596 crore, with a P/E of 16.43. That is not expensive for a business growing sales at 35.46% and profits at 95.76%. The PEG ratio of 0.25 suggests the market is paying very little for that growth, if it continues. But Graham would remind me that high growth rates are rarely permanent, and retail is a brutally competitive game. A durable moat is not obvious from these numbers alone. The balance sheet is acceptable: debt/equity of 0.34, and ROCE of 17.33% shows capital is being put to work reasonably well. The Piotroski F-Score of 7/9 reinforces that the financial health is more than just a headline number. Promoter holding at 70% aligns owners with minority shareholders, which I always appreciate. However, there is no dividend. A zero dividend yield is fine for a fast grower reinvesting capital, but it means my return depends entirely on continued growth and eventual capital allocation. The latest quarter sales of ₹309 crore and net profit of ₹12 crore show momentum. But I would not extrapolate 95% profit growth. FairStock's steady score of 55 is appropriate: good fundamentals, not a spectacular moat. At ₹214.40, near the low end of its 52-week range of ₹150.25 to ₹305.00, the market is giving Patel Retail some credit for history, but not much for magic. I'd want to watch quarterly sales and profit growth, inventory management, and whether promoter holding stays high. If growth slows, the current P/E leaves limited margin of safety.

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