Prakash Industri (PRAKASH)

FairStock Score: 30/100 — RISKY

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

Key Financials

AI Analysis

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

Fellow investor, I look at Prakash Industri through Graham's lens first: price ₹137.68, book value ₹200.38, so Mr. Market asks 69 paise for each rupee of book. P/E 7.40, P/B 0.69. That is not a demanding valuation. Debt/equity 0.14 gives balance-sheet comfort. Promoter holding 44.38%. Dividend yield 1.09% is modest. But cheapness alone never makes a bargain. Business quality? Iron & steel is cyclical. ROE 10.43% and ROCE 11.24% are acceptable but not wonderful; Buffett wants high returns on capital consistently. Sales growth -0.50%, profit growth -22%, 5-year revenue CAGR 1.58%. That tells me the company lacks pricing power or volume momentum. Latest quarter sales ₹799 Cr and net profit ₹87 Cr looks decent, but one quarter cannot offset negative trend. Piotroski F-Score 6/9 is middling—some financial strength, not a fortress of improving fundamentals. FairStock Score 30/100 RISKY warns me. Moat? I see no evidence of a durable competitive advantage from these numbers. Commodity steel producers usually compete on cost, cycles, and balance sheet. Low debt helps survival, but ROE/ROCE barely double digits and low growth suggest no wide moat. Valuation vs growth: P/E 7.40 and P/B 0.69 scream asset play or cyclical value. PEG 1.91, however, says growth does not justify even this multiple if profits keep shrinking. 52-week range ₹110.24–₹172.90 shows volatility. I would treat this as a cyclical asset play, not a compounder. Margin of safety may exist in book value, but only if assets are real and earnings stabilize. For a retail investor, position size cautiously and demand a wider discount or evidence of profit recovery.

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