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

AI Analysis

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

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.

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