Piramal Finance. (PIRAMALFIN)

FairStock Score: 55/100 — STEADY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Buffett and Graham lenses. Piramal Finance is a housing finance company priced at ₹2,057.70, with a market cap of ₹46,505 Cr, P/E 27.55 and P/B 1.65 against book value of ₹1,245.15. The headline profit growth of 50,575% and PEG of 0.07 look dazzling, but Graham would ask whether they are repeatable. Latest quarter sales were ₹2,918 Cr and net profit ₹401 Cr, while sales growth is 30.40%. Yet the five-year revenue CAGR is only 1.45%, so this is a recent surge, not a proven long-term compounding record. ROE at 1,233.15% is so extreme that I treat it as an accounting signal needing scrutiny; ROCE of 7.73% is modest. For an HFC, debt/equity of 2.86 is the business model, but free cash flow of ₹-10,673 Cr means growth is funded by borrowings, not internal cash. A Piotroski F-Score of 7/9 is encouraging, and promoter holding of 46.16% aligns owners, but FairStock score 55/100 says steady, not wonderful. The moat is not evident from these figures; I cannot verify a durable competitive advantage. Valuation is not cheap on earnings at 27.55 times, though 1.65 times book is not extravagant. Dividend yield is only 0.53%. With the stock at ₹2,057.70 within a 52-week range of ₹1,260–₹2,327.85, it trades near the top. I would call this a turnaround with fast-growth optics, but I want evidence of sustainable profits, normalized ROE, and positive cash generation before paying up. Until then, it is a watchlist candidate, not a margin-of-safety bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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