Pokarna (POKARNA)
CyclicalFairStock Score: 42/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹952.4 |
| Market Cap | ₹2,952.82 Cr |
| P/E Ratio | 31.15 |
| ROCE | 28.38% |
| ROE | -6.9% |
| Dividend Yield | 0.06% |
| Profit Growth | 50.5% |
| Debt/Equity | 0.53 |
| Sales Growth | 10.8% |
| Promoter Holding | 56.66% |
| 52-Week Range | ₹692.6 — ₹1,146.2 |
| Sector | Consumer Durables |
| Book Value | ₹35.47 |
Strengths
- ROCE of 28.38% indicates strong operational capital efficiency despite weak ROE.
- Debt-to-equity of 0.38 is low, giving the company financial flexibility.
- Promoter holding of 56.66% aligns promoter interests with minority shareholders.
- Latest quarter remains profitable with ₹20 Cr net profit on ₹135 Cr sales.
Concerns
- Sales growth of -39.64% and profit growth of -59.66% show severe demand contraction.
- Negative ROE of -6.90% combined with P/B of 25.81 makes the valuation extremely rich.
- Piotroski F-Score of 3/9 and FairStock Score of 13/100 indicate weak financial health.
- Dividend yield of only 0.07% offers negligible passive return to shareholders.
AI Analysis
When I look at Pokarna, the first thing I ask is: what am I actually buying? At ₹915.35, the market is valuing this granite and marble company at ₹2,811 crore, or 25.81 times book value. Yet the business earned a negative return on equity of -6.90% last year. That is arithmetic I cannot accept. A high P/B with negative ROE means you are paying a wealthy price for a business that is currently destroying shareholder equity. The P/E of 24.67 may look normal, but with sales down 39.64% and profits down 59.66%, this is a cyclically depressed earnings figure, not a sign of value. The company still reports a ROCE of 28.38%, which suggests decent operating capital efficiency, and debt-to-equity of 0.38 is manageable. Promoter holding of 56.66% is good. But the Piotroski F-Score of 3 out of 9 alarms me — it points to weak fundamentals and possible financial stress. The latest quarter shows ₹135 crore sales and ₹20 crore net profit, but one quarter does not revive a deteriorating trend. Dividend yield is just 0.07%, so minority shareholders are not being paid to wait. This is a cyclical business in a downcycle and the stock trades near ₹915, not far from its 52-week high. Benjamin Graham would say there is no margin of safety. Warren Buffett would say it is a good business only if it can prove durable earnings recovery. Today, it is a speculation on granite demand, not an investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer