Plaza Wires (PLAZACABLE)

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

Key Financials

Strengths

• Sales growth of 33.91% indicates solid demand traction in the electrical cables segment.
• Low debt/equity of 0.27 provides balance-sheet cushion and limits financial risk.
• Piotroski F-Score of 7/9 points to generally sound financial health and improving operations.
• Promoter holding of 69.83% keeps management's interests aligned with public shareholders.
• P/B of 1.43 with book value of ₹28.03 is not excessive if profitability improves.

Concerns

• ROE of 4.35% and ROCE of 4.41% are very low; the business is not yet earning acceptable returns on capital.
• P/E of 32.04 is rich for a commodity-like cable business, and no dividend means shareholders get no current yield.
• Latest quarter net profit of ₹2 Cr on sales of ₹66 Cr implies thin margins; 757.14% profit growth is off a low base and PEG of 0.08 is misleading.
• No clear moat in a competitive, price-sensitive electrical cables industry.

AI Analysis

Plaza Wires catches my eye only because of its 33.91% sales growth, but the rest of the story does not yet meet my standards. A good business earns a high return on equity without excessive leverage; here ROE is 4.35% and ROCE is 4.41%. For every ₹100 of equity, the company is producing less than ₹5 in profit. That is not a wonderful compounder, it is a marginal user of capital. The 757.14% profit growth and 0.08 PEG look exciting on a screen, but with latest quarter net profit of only ₹2 Cr against sales of ₹66 Cr, I see a low-margin, competitive cable manufacturer, not a franchise with pricing power. Graham taught me to value facts and margin of safety, and the price of ₹40.09 with a P/E of 32.04 gives me very little room for error. Book value is ₹28.03 and P/B is 1.43; paying 1.43 times book could be acceptable only if returns improve materially. On the positive side, the balance sheet is conservative: debt-to-equity is 0.27, and Piotroski F-Score of 7/9 suggests financial distress is not a near-term issue. High promoter holding of 69.83% aligns owners with minority shareholders, but I also note there is no dividend, so I rely entirely on management's ability to reinvest capital wisely. I will not chase a PEG of 0.08, because it extrapolates a tiny base year into forever. I would rather wait on the sidelines until Plaza Wires demonstrates that its larger sales translate into durable margins and return on capital.

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