Paramount Specia (PSFL)

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

Key Financials

Strengths

• Strong growth with modest valuation: sales up 23.26%, profit up 36.88%, P/E 11.26 gives PEG 0.37
• Piotroski F-Score 7/9 indicates good operating efficiency and financial health signals
• High promoter holding of 72.29% aligns management interests with minority shareholders
• ROCE of 12.49% is reasonable for an industrial microcap, showing acceptable capital deployment

Concerns

• Critical data missing: Book Value, ROE, and Debt/Equity are N/A, so balance-sheet risk cannot be assessed
• Thin net margin: latest quarter ₹2 Cr profit on ₹58 Cr sales (~3.4%), leaving little room for cost shocks
• No dividend yield: zero income support; return depends entirely on continued growth
• Low free float with high promoter holding may cause sharp price swings; 52W range ₹21.15-₹38.75 shows volatility

AI Analysis

At ₹30.40 with a market cap of only ₹57 Cr, Paramount Specia looks interesting, but I am flying with partial instruments. The price-to-earnings ratio of 11.26 is reasonable, and when I see sales growing 23.26% and profit growing 36.88%, the PEG of 0.37 catches my attention. A business growing faster than the multiple it trades at is precisely the kind of opportunity Graham would ask me to investigate more deeply. The Piotroski F-Score of 7 out of 9 also says that profitability and operating health are decent, and ROCE of 12.49% is acceptable for a small industrial. Promoters holding 72.29% is a good sign; they have skin in the game. However, I have not seen evidence of balance-sheet strength. Book value, ROE, and debt-to-equity are blank. That worries me. I cannot judge whether this growth is being built on excessive leverage or whether returns on equity are genuinely strong. The latest quarter shows net profit of ₹2 Cr on sales of ₹58 Cr, which is only a 3.4% net margin. That is thin. In an industrial products business, a small increase in raw material costs or a dip in orders can erase profits. The stock also pays no dividend, so I receive no return while I wait. At ₹57 Cr, this is a microcap, and with 72.29% locked with promoters, free float is tiny. The 52-week range of ₹21.15 to ₹38.75 reminds me that price swings will be wild. I would not rush. I need annual reports, cash flow statements, debt details, and an understanding of the order book. If the fundamentals confirm the headline numbers, the current price may be a bargain. But without full data, I will keep discipline. As Graham said, price is what you pay, value is what you get. Here the price is low, but I need more proof of value.

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