The Piotroski score, ranging from zero to nine, assesses a company’s financial strength, with nine indicating the strongest position. The price-to-earnings (P/E) ratio measures a stock’s share price relative to its earnings, where a high P/E may suggest overvaluation, and a low P/E indicates better value, as investors pay less for each rupee of earnings.
Here are 3 micro-cap stocks with a high Piotroski score of 9 and P/E lower than industry average:
Hindustan Hardy Limited
Hindustan Hardy Limited is an India-based company, which is engaged in the business of designing and manufacturing of propeller shafts and other accessories required for automotive, industrial, agricultural and other applications.
With a market capitalization of Rs.79.4 crores, the company’s share price opened at Rs.600 per share on Monday’s trading session, rising around 0.96 percent compared to its previous closing price. The company has a Piotroski score of ‘9’.
The stock is trading at a P/E of 19.6, below the industry average of 35.84, with an EPS (Earning Per Share) of Rs.27.
Looking forward to Hindustan Hardy’s financial performance, revenue inclined slightly by 0.8 percent to Rs.16.53 crore in Q1FY25 from Rs.16.4 crore in Q1FY24. During the same time frame, net profit decreased 51 percent to Rs.0.79 crore from Rs.1.61 crore.
Universal Starch Chem Allied Limited
Universal Starch Chem Allied Limited is involved in the development, manufacturing, and distribution of various maize-based products, including maize starch powder, white dextrin, pregelatinized starch, modified starch, liquid glucose, dextrose syrup, dextrose monohydrate, and many more.
With a market capitalization of Rs.86.8 crores, the company’s share price opened at Rs.220 per share on Monday’s trading session, rising around 6.28 percent compared to its previous closing price. The company has a Piotroski score of ‘9’.
The stock is trading at a P/E of 15.2, below the industry average of 32.2, with an EPS of Rs.13.6.
Regarding Universal Starch-Chem Allied’s financial performance, revenue declined by 2 percent to Rs.133.27 crore in Q1FY25 from Rs.135.96 crore in Q1FY24. Net profit also saw a significant drop of 66 percent, falling to Rs.1.46 crore from Rs.4.29 crore during the same period.
ATV Projects India Limited
ATV Projects India Limited (ATV) is an engineering company specialising in manufacturing heavy equipment for industries such as sugar, fertiliser, chemical, petrochemicals, steel, power, and nuclear power.
With a market capitalization of Rs.176 crores, the company’s share price opened at Rs.36.3 per share on Monday’s trading session, rising 4.5 percent from its previous close, The company has a Piotroski score of ‘9’.
The stock is trading at a P/E of 29.2, below the industry average of 41.5, with an EPS of Rs.1.14.
For ATV Projects’ financial performance, revenue increased by 42.55 percent to Rs.19.83 crore in Q1FY25 from Rs.13.91 crore in Q1FY24, while net profit declined by 21.2 percent to Rs.1.6 crore from Rs.2.03 crore during the same period.
Written by – Siddesh S Raskar
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