Premium Plast (PREMIUM)

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

Key Financials

Strengths

• Sales growth of 65.45% and profit growth of 50.57% indicate strong momentum.
• P/E of 8.25 and PEG of 0.14 suggest the market is pricing in very little of this growth.
• ROCE of 23.81% and an F-score of 7/9 point to solid capital efficiency and financial health.
• Promoter holding of 68.73% aligns management interest with minority shareholders.

Concerns

• No book value, ROE, or debt-equity data makes the balance sheet impossible to fully assess.
• Zero dividend yield means no cash return while waiting for growth to materialise.
• Tiny market cap of ₹64 crore creates volatility and possible liquidity risk.
• Auto components is cyclical; the high growth may not be durable across an industry downturn.

AI Analysis

At ₹37, Premium Plast trades at just 8.25 times trailing earnings. That sounds cheap. The market cap is only ₹64 crore, and the latest quarter shows ₹39 crore in sales with ₹4 crore in net profit—roughly a 10 per cent margin. ROCE of 23.81 per cent suggests the business is generating solid returns on capital. Sales growth of 65.45 per cent and profit growth of 50.57 per cent would make any investor lean forward. The PEG ratio of 0.14 is almost absurd if the growth is real. But as Graham taught, cheap can be a trap if quality is missing. I do not have book value, ROE, or debt-to-equity figures because the data is insufficient. Without a full balance sheet, I cannot judge true financial strength. Auto components are cyclical, and a small supplier to OEMs may have limited pricing power. Promoter holding at 68.73 per cent is reassuring to my gut, but concentration cuts both ways. The Piotroski F-score of 7 out of 9 is encouraging for financial health. Still, I would need to see this momentum sustained over several quarters before calling it a wonderful business. At 8 times earnings with this growth, it could be a fast grower and a bargain. But my rule is that a good business at a fair price is better than a fair business at a good price. Here, the numbers suggest a good little business, but missing data makes me pause. No dividend means I am relying entirely on appreciation and reinvestment. I would start small, watch quarterly execution closely, and demand evidence that this growth is not a one-quarter glimmer.

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