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. A high P/E may suggest overvaluation and a low P/E indicates better value, as investors pay less for each rupee of earnings.
FMCG stocks with a strong Piotroski score and a P/E ratio below the industry average suggest solid financial health and operational efficiency, indicating potential undervaluation relative to their performance.
Here are two FMCG stocks with a high Piotroski score of 9 and P/E lower than the industry average:
Naturite Agro Products Limited
With a market capitalization of Rs.46 crores, Naturite Agro Products Ltd.’s share price closed at Rs.86.95 per share and is currently not trading.
The company has a Piotroski score of 9 and its stock is trading at a P/E of 26.8, below the industry average of 38.4, with an EPS of Rs.3.25.
Turning to the company’s financials, for Q1FY25, revenue increased by 15.22 percent to Rs.2.27 crore from Rs.1.97 crore in Q1FY24. Net profit also rose to Rs.0.09 crore, compared to a net loss of Rs.1.28 crore in the same period last year.
Naturite Agro Products Ltd. is a leading manufacturer and exporter of spice oils and oleoresins with a production capacity of 2,500 tons. The company is known for its quality and exports globally, including to the US and Japan.
Naturite produces a range of spice oils and oleoresins, such as Capsicum, Paprika, and Turmeric Oleoresins. These are utilised in food, pharmaceuticals, and healthcare for their therapeutic and antioxidant benefits.
Jhandewala Foods Limited
With a market capitalization of Rs.114 crores, Jhandewala Foods Ltd.’s share price is currently trading at Rs.105.40, rising 3.7 percent compared to its previous close.
The company has a Piotroski score of 9 and its stock is trading at a P/E of 19.9, below the industry average of 38.4, with an EPS of Rs.23.6.
The company reports financial statements semi-annually. For H2FY24, Jhandewala Foods’ revenue surged by 100 percent year-on-year to Rs.16 crore, up from Rs.8 crore in H2FY23. On a half-yearly basis, profit skyrocketed by 475 percent to Rs.23 crore in H2FY24, compared to Rs.4 crore in H1FY24.
Jhandewala Foods Limited, based in Jaipur, Rajasthan, manufactures food products like ghee, mangodi, and poha under the brands “Naman’s” and “Godhenu.” The company, known for its strong heritage, aims to expand its presence across India while upholding high quality standards.
Written by – Siddesh S Raskar
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