The Piotroski score is a score between zero and nine that reflects nine parameters used to determine the strength of a company’s financial position. It is used to find the best-value stocks. The parameters used to arrive at this score include net income, operating cash flow, quality of earnings, return on assets, leverage, current ratio, outstanding shares, gross margin, and asset turnover ratio.
This method of screening stocks was named after Joseph Piotroski, who devised the scale. Zero is the lowest score, while nine is the highest. Here are four stocks that have a perfect Piotroski score of nine:
| Company | GNFC | West Coast Paper Mills | Cosmo First | Dwarikesh Sugar |
|---|---|---|---|---|
| Piotroski score | 9 | 9 | 9 | 9 |
| Net Profit -2022 (₹ in Crores) | 1703 | 345 | 396 | 155 |
| Return on assets (%) | 15.95 | 9.18 | 14.37 | 10.93 |
| Debt to equity ratio | 0 | 0.26 | 0.68 | 0.77 |
| Current Ratio | 3.61 | 1.63 | 1.6 | 1.62 |
| Gross Profit Margin (%) | 30 | 20.47 | 20.39 | 14.89 |
| Asset Turnover Ratio | 0.91 | 0.73 | 1.21 | 1.38 |
Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC)
GNFC is a government of Gujarat undertaking that operates businesses in industrial chemicals, and fertilizers apart from a small presence of IT services. It is a mid-cap company with a market capitalization of ₹ 10,447 crores and its shares are trading at ₹ 670 levels.
West Coast Paper Mills Ltd.
It is one of the oldest and largest producers of paper for printing, writing, and packaging in India. It caters to various industries and has constantly been pursuing the upgradation of its technologies. It is a small cap company with a market capitalization of ₹ 3,323 crores and its shares are trading at ₹ 500 levels.
Cosmo First Ltd.
The company is engaged in speciality films for packaging, lamination and labelling applications. It has four state-of-the-art manufacturing units, three in India and one in Korea, facilitating a tremendous production capacity. Cosmo First has a market capitalization of ₹ 2,406 crores and is a small-cap company. Its shares are trading at ₹ 880 levels.
Dwarikesh Sugar Industries Ltd.
Dwarikesh Sugar Industries Ltd is engaged in the manufacturing of sugar and allied products. It has a strong presence in fields such as sugar manufacturing, power and ethanol/ industrial alcohol production. The company has a market capitalization of ₹ 1,886 crores and is a small-cap company. Its shares are trading at ₹ 100 levels.
Written by Simran Bafna
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
