Perfect Infraeng (PERFECT)

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

Key Financials

Strengths

• Positive latest quarter: sales ₹3 Cr and net profit ₹1 Cr show some near-term operating pulse.
• P/E of 5.33 appears optically cheap if the current earnings can be sustained.
• Promoter holding of 30.65% gives some alignment, though modest for a micro-cap.
• Small market cap of ₹4 Cr means even a small absolute earnings improvement could move the stock significantly.

Concerns

• Sales growth of -41.41% and profit growth of -49.29% show severe deterioration.
• ROCE of 0.92% and Piotroski F-Score of 3/9 indicate poor capital efficiency and weak financial health.
• Data inconsistencies: 52-week range of ₹8.10-₹8.10 vs current price of ₹2.50; book value, ROE and debt/equity unavailable.
• No dividend, and a 33% net margin in the latest quarter appears unsustainable without more operating detail.

AI Analysis

At ₹2.50, this is a ₹4 crore micro-cap with a P/E of 5.33. That looks cheap only if the earnings are real, recurring, and backed by a sound balance sheet. The numbers I see do not give me that comfort. Sales are down 41.41% and profits are down 49.29%; ROCE is a negligible 0.92%. This is not a wonderful business. It is a small, deteriorating electrical equipment company with no moat. The latest quarter shows ₹3 crore of sales and ₹1 crore of net profit, a 33% net margin that seems far too rich for this industry—I would suspect non-operating income or data inconsistencies until proven otherwise. The Piotroski F-Score of 3 out of 9 reinforces my concern: financial health is poor. Book value, ROE, and debt-equity are not available, so I cannot apply Graham's test of buying assets below worth. Promoter holding of 30.65% is low for a micro-cap; I like owners to have much more skin in the game. The quoted 52-week range of ₹8.10 to ₹8.10 while the market price is ₹2.50 is a glaring red flag—either the stock is completely illiquid, or the data is unreliable. There is no dividend, and growth is sharply negative. At 5.33 times earnings, the stock may look statistically cheap, but in Buffett's words, a fair price on a poor business is no bargain. This has the shape of a potential turnaround, but turnarounds are not my game, and Graham would demand a clear margin of safety. I would not buy. I would need several quarters of stabilised sales, improving ROCE, and a trustworthy balance sheet before revisiting.

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