Worth Peripheral (WORTHPERI)

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

Key Financials

Strengths

• Low leverage with debt/equity of 0.10, giving balance-sheet stability.
• Promoter holding of 68.16% aligns owner interests with minority shareholders.
• Reasonable entry valuation: P/E of 13.56 and P/B of 1.20 against book value of ₹115.75.
• Sales growth of 10.33% shows underlying demand for the packaging business.
• ROCE of 13.20% indicates acceptable capital efficiency despite weak profit trend.

Concerns

• Profit fell 22.44% even while sales grew, pointing to significant margin compression.
• Piotroski F-Score of 4/9 suggests deteriorating financial fundamentals.
• Implied ROE of roughly 8.85% from P/E and P/B is far from a high-quality compounding business.
• Dividend yield of only 0.72% provides little downside support for investors.

AI Analysis

Let me look at Worth Peripheral as an analyst, not a speculator. I can understand packaging, but understanding is not enough – I need strength, stability and a margin of safety. At ₹138.64, the market values the firm at ₹219 crore. The P/E of 13.56 and P/B of 1.20 against book value of ₹115.75 look reasonable, and the balance sheet is conservative with debt/equity only 0.10. A promoter holding of 68.16% tells me the people inside have skin in the game. Yet I must be honest about the earning power. Sales grew 10.33%, but profits fell 22.44%. That is not the story of a business with pricing power or a wide moat. The latest quarter shows net profit of ₹4 crore on sales of ₹75 crore – only a 5.3% net margin. From the P/E and P/B, I can infer an ROE of about 8.85%, which is far from the kind of exceptional return on equity I demand. ROCE of 13.20% is decent, but the Piotroski F-Score of 4/9 signals financial weakness: the trend in profitability, leverage and efficiency is not in my favour. Graham would say: pay a fair price for a good business, not a questionable one at a seemingly fair price. The low leverage and tangible book give some support, but the deteriorating earnings and falling F-score mean I lack the margin of safety. Dividend yield of only 0.72% won't compensate me while I wait. This feels like a cyclical packaging operation, not a wealth compounder. If volumes are growing but profits are not, there is a cost or pricing problem that must be fixed. I will not chase it. I would need either a lower price, a stronger balance-sheet signal, or clear evidence that margins are recovering before I put my money to work. For now, it stays on my watchlist, not in my portfolio.

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