Prism Johnson (PRSMJOHNSN)
CyclicalFairStock Score: 9/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹105.12 |
| Market Cap | ₹5,291.28 Cr |
| P/E Ratio | 26.55 |
| ROCE | 2.22% |
| ROE | 18.04% |
| Dividend Yield | 0% |
| Profit Growth | 999% |
| Debt/Equity | 0.93 |
| Sales Growth | 3.34% |
| Promoter Holding | 74.87% |
| 52-Week Range | ₹97.1 — ₹176 |
| Sector | Cement & Cement Products |
| Book Value | ₹30.9 |
Strengths
- Promoter holding of 74.87% indicates strong insider ownership and alignment.
- Latest quarter is profitable with net profit of ₹50 Cr on ₹1,844 Cr sales.
- Debt-to-equity of 0.93 is not heavily leveraged for a cement company.
- Business operates in the cement and cement products industry, which has long-term infrastructure demand.
Concerns
- P/E of 866.04 and P/B of 5.07 leave no margin of safety against feeble earnings.
- Profit growth of -140.67% and ROCE of 2.22% show severe deterioration and poor capital efficiency.
- Piotroski F-score of 4/9 and FairStock Score of 0/100 signal weak financial health.
- Zero dividend yield offers no income support while waiting for a turnaround.
AI Analysis
As a value investor, I am not in the business of paying for hope. Prism Johnson is quoted at ₹131.46, which is more than five times book value of ₹25.95, and the trailing P/E of 866.04 tells me earnings have almost vanished while the market still prices it like a growth machine. The reported ROE of 18.04% does not square with that P/E or with an ROCE of just 2.22%; when numbers do not reconcile, I choose caution. Graham would ask: what are the defensible earnings power? At present, profit growth is -140.67% and sales growth is only 1.28%. The latest quarter shows a net profit of ₹50 Cr on sales of ₹1,844 Cr, a razor-thin margin that cannot justify a ₹6,331 Cr market cap. ROCE of 2.22% is far below the cost of capital; this business is destroying value, not compounding it. Financial health is mediocre: debt/equity is 0.93, the Piotroski score is only 4/9, and there is no dividend yield to pay me while I wait. Promoter holding of 74.87% is a genuine positive, but even aligned owners cannot transform weak pricing power and poor returns. This is a cyclical stock, perhaps a turnaround story someday, but with a P/B of 5.07 and an absurd PEG, I see no margin of safety. Mr. Market is asking me to value perfection in an imperfect business. I prefer to keep my capital and wait for better odds.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer