Prostarm Info (PROSTARM)

FairStock Score: 49/100 — MIXED

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

Key Financials

Strengths

• Sales growth of 110.80% and profit growth of 104.88% are exceptional.
• Very low debt/equity of 0.06 provides financial cushion.
• ROCE of 29.95% indicates efficient use of capital.
• PEG ratio of 0.24 suggests reasonable valuation if growth persists.
• High promoter holding of 72.82% aligns management interests.

Concerns

• ROE is reported as N/A, making return-on-equity quality unverifiable.
• No dividend means investors rely entirely on future price appreciation.
• Stock is 34% below its 52-week high, indicating volatility or fading momentum.
• FairStock Score of 48 is mixed and does not signal clear value.

AI Analysis

When I look at Prostarm Info, I try to ignore the market's mood and focus on what the figures actually tell me. Sales growth of 110.80% and profit growth of 104.88% are remarkable by any standard. A PEG ratio of 0.24 suggests the market is paying surprisingly little for this pace of growth, almost as if it doubts the sustainability. That skepticism is healthy. One great year does not create a moat. The balance sheet, though, is genuinely encouraging: debt/equity of only 0.06 and an ROCE of 29.95% show the business is generating strong returns on capital without leaning on leverage. That is a quality signal. What troubles me is that ROE is reported as N/A. As Graham would insist, if I cannot measure return on equity, I cannot properly judge whether management is compounding shareholder capital efficiently. The promoter holding of 72.82% aligns interests, but it also limits liquidity and can amplify volatility. The 52-week range of ₹114.64 to ₹237.00 tells me this stock has already had a rough ride; at ₹156.90 it sits well below the high, so the market has not priced this as a flawless story. Valuation is not cheap on trailing earnings: P/E of 26.25 and P/B of 3.19 require continued strong performance. The zero dividend means shareholders depend entirely on future growth and reinvestment. The Piotroski F-Score of 7 supports the bull case, but the FairStock Score of 48 is mixed. This is a fast grower, not a stalwart. I would need several more quarters of this growth, improving ROE, and no deterioration in capital efficiency before I would pay this multiple. If growth slows, the current price could look demanding.

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