The Piotroski Score is a financial metric used to assess a company’s financial health by assigning a score based on nine criteria. Developed by Professor Joseph Piotroski, this score helps investors evaluate whether a company’s financial situation is improving or declining.
The criteria include factors such as profitability (positive net income and return on assets), cash flow (positive operating cash flow and cash flow exceeding net income), debt management (reduction in long-term debt), liquidity (increase in the current ratio), equity issuance (no new shares issued), and operational efficiency (increase in gross margin and asset turnover).
Each of these factors is assigned one point, and the total score ranges from 0 to 9. A higher score (7-9) indicates a financially strong company, while a lower score (0-3) suggests potential weaknesses.
List of stocks to watch out for:
1. National Aluminium Company Ltd
NALCO is a leading public sector enterprise in India, primarily engaged in the mining, refining, and production of aluminum. Established in 1981, it is one of the largest integrated aluminum producers in the country. The company operates across the entire aluminum value chain, from bauxite mining to the manufacturing of aluminum products.
NALCO Limited has a high Piotroski score of 9, and the company’s revenue has increased from Rs. 3,663.09 crore in Q4 FY24 to Rs. 5,393.44 crore in Q4 FY25, which has grown by 47 percent. The net profit has increased from Rs. 996.74 crore in Q4 FY24 to Rs. 2,067.23 crore in Q4 FY25.
2. GE Vernova T&D
GE Vernova is the new energy brand launched by General Electric (GE) that focuses on advancing the future of energy and decarbonization solutions. Its Transmission & Distribution (T&D) division is responsible for providing solutions to enhance grid reliability, optimize energy delivery, and promote sustainable energy use.
GE Vernova Limited has a high Piotroski score of 9, and the company’s revenue has increased from Rs. 970.14 crore in Q4 FY24 to Rs. 1,346.43 crore in Q4 FY25, which has grown by 38 percent. The net profit has increased from Rs. 134.54 crore in Q4 FY24 to Rs. 291.2 crore in Q4 FY25.
3. Gillette India Limited
Gillette India is a subsidiary of Procter & Gamble (P&G) and a leading brand in the grooming industry. Known for its razors, shaving products, and male grooming accessories, Gillette has built a strong brand presence in India and across the globe. The company focuses on delivering high-performance shaving products that ensure comfort and precision.
Gillette India Limited has a high Piotroski score of 9, and the company’s revenue has increased from Rs. 686.43 crore in Q4 FY24 to Rs. 13.5 crore in Q4 FY25, which has grown by 13.5 percent. The net profit has increased from Rs. 99.09 crore in Q4 FY24 to Rs. 158.68 crore in Q4 FY25.
3. Multi-Commodity Exchange of India Ltd
MCX is India’s largest commodity exchange platform, enabling trading in a wide range of commodities, including metals, energy, and agricultural products. Established in 2003, it provides an efficient and transparent marketplace for the trading of commodities, contributing to price discovery and risk management.
Multi-Commodity Exchange Limited has a high Piotroski score of 9, and the company’s revenue has increased from Rs. 199.45 crore in Q4 FY24 to Rs. 320.49 crore in Q4 FY25, which has grown by 60.6 percent. The net profit has increased from Rs. 87.87 crore in Q4 FY24 to Rs. 135.46 crore in Q4 FY25.
Written by Sridhar J
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