Pattech Fitwell (PATTECH)

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

Key Financials

Strengths

• 45.85% sales growth shows strong near-term demand momentum.
• Promoter holding of 57.01% aligns owner interests with minority shareholders.
• Latest quarter revenue of ₹35 crore against a ₹100 crore market cap implies a modest price-to-sales level if annualised.
• ROCE is positive at 9.67%, indicating the business generates some return on deployed capital.

Concerns

• Profit growth of -8.33% despite 45.85% sales growth shows margin compression and no operating leverage.
• P/E of 87.58 and PEG of 1.91 leave no margin of safety for a small-cap cyclical.
• Piotroski F-score of 4/9 suggests weak financial health and limited fundamental improvement.
• Insufficient data on book value, debt/equity, and ROE, plus a zero dividend yield, make the investment hard to evaluate.

AI Analysis

When I look at Pattech Fitwell, I start with a simple truth: in castings and forgings, you are a price-taker in a cyclical, capital-intensive trade. The company has grown sales by 45.85%, and that grabs attention. But as Graham would say, revenue is an opinion; profit is the fact. Trailing profit is down 8.33%, and the latest quarter shows ₹35 crore sales translating to just ₹1 crore net profit — a thin margin of under 3%. At ₹91.65, the market capitalisation is ₹100 crore, or 87.58 times earnings. That price assumes remarkable future improvement. ROCE is only 9.67%, not the kind of return that signals a wide moat or enduring pricing power. The Piotroski F-score of 4/9 reinforces my caution: the financial health score is weak, not strengthening. The dividend yield is zero, so the investor receives no cash while waiting. Promoter holding is high at 57.01%, which is good for alignment, but with no book value or debt-equity data available, I cannot fully judge the balance sheet. A PEG of 1.91 says the market is paying almost twice the growth rate for earnings that are currently falling. The 52-week range of ₹84 to ₹154.30 shows how easily this stock moves on sentiment. In my view, this is a small, cyclical business with a growing top line but unproven profitability. There is no margin of safety at this price. I would prefer to watch from the sidelines until either earnings catch up with the price or the price comes down to a level that compensates for the risks.

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