Piotroski score, named after Stanford accounting professor Joseph Piotroski, is a number between ‘0’ and ‘9’ used to assess the strength of a company’s financial position. Financial investors use the score to find the best-value stocks.
In 2024, the automotive industry in India is poised for significant developments and opportunities. As the country enters this promising year, the automotive, transportation, and logistics sectors are expected to play a pivotal role in shaping the industrial landscape.
Listed below are such smallcap automobile stocks that have a Piotroski score of upto 9:
Force Motors Ltd
With a market capitalization of Rs. 8,072 crores, the shares of Force Motors started Thursday’s trading session on a higher note at Rs. 5,919.95 compared to its previous close of Rs. 5,900. During the trading session, the shares hit a high of Rs. 6,249, gaining around 7 percent and are currently trading at Rs. 6,222 apiece. The company have a high Piotroski score of ‘9’
Looking at the company’s financial statements, the revenue increased by 30 percent from Rs. 1,304 crores during Q3FY23 to Rs. 1,692 crores in Q3FY24. In addition, the net profits showcased a transition from a net loss of Rs. 16 crores to Rs. 85 crores during the same period.
The company registered a 5.81 percent increase in domestic sales to 2,366 units in February 2024 as against 2,236 units sold in February 2023. Furthermore, export sales stood at 95 units in February 2024, down 57.01 percent from 221 units sold in February 2023.
Coming onto the important financial ratios, the return on equity (RoE) shifted from a negative 5.08 in FY 21-22 percent to a positive 7.38 percent during FY22-23 and the return on capital employed (RoCE) was improved by -3.35 percent to 12.07 percent during the same period.
VST Tillers Tractors Ltd
With a market capitalization of Rs. 2,670 crores, the shares of VST Tillers Tractors started Thursday’s trading session on a higher note at Rs. 3,110 compared to its previous close of Rs. 3,101.90. During the trading session, the shares hit a high of Rs. 3,117.45, gaining around 2 percent and are currently trading at Rs. 3,090 apiece. The company have a good Piotroski score of ‘6’.
Looking at the financial statements, the revenue declined by 21 percent from Rs. 214 crores in Q3FY23 to Rs. 170 crores during Q3FY24. On the other hand, the net profits decreased by 11 percent from Rs. 19 crores to Rs. 17 crores during the same period.
The company sold 397 tractors, experiencing a 19.14 percent decline from the previous year. On the other hand, power tiller sales witnessed a growth of 7.46 percent, with 3773 units sold in the domestic market. When combining tractor and power tiller sales, VST achieved a total of 4170 units in February 2024, marking a growth of 4.19 percent compared to the 4002 units sold in February 2023.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 14.02 percent during FY 21-22 to 11.74 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 17.81 percent to 15.17 percent during the same timeframe.
SML ISUZU Ltd
With a market capitalization of Rs. 3,006 crores, the shares of SML ISUZU started Thursday’s trading session on a higher note at Rs. 2,049 compared to its previous close of Rs. 2,036. During the trading session, the shares hit a low of Rs. 2,099, gaining around 3 percent and are currently trading at Rs. 2,071 apiece. The company have a high Piotroski score of ‘9’.
Looking at the company’s financial statements, the revenue increased by 18 percent from Rs. 327.75 crores during Q3FY23 to Rs. 386.13 crores in Q3FY24. In addition, the net profits showcased a transition from a net loss of Rs. 13 lakhs to Rs. 2.86 crores during the same period.
The company experienced a 6 percent increase in total sales in February 2024, selling 1,010 units compared to 953 units in February 2023. Looking at the Segment-wise sales in February 2024, the company’s passenger vehicles sales stood at 604 units, down 4 percent YoY and the cargo vehicle sales were at 406 units, up 26 percent YoY.
Coming onto the important financial ratios, the return on equity (RoE) shifted from a negative 61.77 in FY 21-22 percent to a positive 11.14 percent during FY22-23 and the return on capital employed (RoCE) was improved by -35.40 percent to 16.82 percent during the same period.
Written By Vaibhav Patil
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