Pratham EPC (PRATHAM)

FairStock Score: 25/100 — RISKY

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

Key Financials

Strengths

• Return on capital employed of 25.63% shows strong capital efficiency at the operating level.
• Promoter holding of 71.16% ensures meaningful skin in the game.
• Sales still grew 9.70%, indicating the business is not in a revenue freefall.
• Latest quarter shows ₹68 Cr revenue and ₹5 Cr net profit, so current operations are generating earnings.

Concerns

• Net profit is down 39.81% while the stock trades at 24.85 times earnings, leaving no margin of safety.
• Piotroski F-Score of 4/9 suggests weak financial health and possible deterioration.
• Zero dividend yield means investors receive no compensation while waiting for a recovery.
• Missing book value, ROE, and debt/equity data make the balance sheet risk impossible to assess.

AI Analysis

At first glance, Pratham EPC's 25.63% ROCE catches my eye. That is the kind of number that suggests a business knows how to put capital to work. But my Graham instinct is to keep looking. Sales grew 9.70%, yet net profit fell 39.81%. A business that grows revenue while earnings shrink is suffering margin pressure, and in civil construction, competitive bidding often turns into a race to the bottom. The current price of ₹140 gives a market cap of ₹258 Cr, and the P/E of 24.85 is not cheap for a profit decline of that magnitude. The latest quarter has sales of ₹68 Cr and net profit of ₹5 Cr, so operating traction exists, but one quarter cannot justify a lofty multiple when the annual trend is down. The Piotroski score of 4/9 is another red flag. It tells me the financial position has weakened. Promoter holding of 71.16% is a plus — I like owners with real skin in the game. But with zero dividend yield, I am not paid to wait. The 52-week range of ₹100 to ₹196 shows this is a volatile stock, not a stable compounder. I cannot compute book value, return on equity, or debt/equity from the data, which is a serious handicap to any Graham-style margin-of-safety analysis. Civil construction lacks the durable moat I want; contracts come and go, and profitability depends on execution and economic cycles. A PEG of 2.56 reinforces that growth is already priced in. In short, Pratham EPC is a cyclical business with some good capital efficiency metrics, but the profits are declining and the balance sheet remains opaque. I would wait on the sidelines until margins stabilise and debt details are available.

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