Piotroski Score, ranked from ‘zero’ to ‘nine’, is a discrete score based on nine different parameters such as net income, long-term debt, current ratio, gross margin, return on assets, asset turnover ratio, dilution of shares, operating cash flows in the current year, and also checks if the cash flow from operations is greater than the net income levels. 

A score of ‘nine’ is the best and ‘zero’ being the worst. Listed below are three stocks with a Piotroski score of ‘nine’ to keep on your radar: 

JK Paper Limited 

With a market capitalization of Rs 6,488.11 crores, the shares of JK Paper Limited closed at Rs 382.10 on Friday, gaining around 0.25 percent as compared to the previous closing levels of Rs 381.15 apiece. 

Having a glance at the financials of the paper manufacturing company, the prime indicators such as the operating revenues, as well as after-tax profits, increased with the former moving up from Rs 3,968.56 crores during FY21-22 to Rs 6,436.81 crores during FY22-23, and, the latter shifting from Rs 543.82 crores to Rs 1,208.22 crores keeping the timeframe the same. 

In addition, the profitability ratios rose with the return on equity (RoE) increasing from 19.73 percent during FY21-22 to 34.37 percent during FY22-23, and, the return on capital employed (RoCE) taking a shift from 16.58 percent to 29.12 percent. 

Jyothy Labs Limited 

With a market capitalization of Rs 12,828.43 crores, the shares of Jyothy Labs Limited closed at Rs 349.35 on Friday, slipping around 0.40 percent as compared to the previous closing levels of Rs 350.60 apiece. 

Having a walkthrough of the financials of the FMCG goods manufacturer, the prime indicators such as the operating revenues, as well as after-tax profits, increased with the former moving up from Rs 2,196.49 crores during FY21-22 to Rs 2,486.02 crores during FY22-23, and, the latter shifting from Rs 159.13 crores to Rs 239.73 crores keeping the timeframe the same. 

In addition, the profitability ratios rose with the return on equity (RoE) increasing from 11.08 percent during FY21-22 to 16.02 percent during FY22-23, and, the return on capital employed (RoCE) taking a shift from 13.4 percent to 20.03 percent. 

PI Industries Limited 

With a market capitalization of Rs 51,796.57 crores, the shares of PI Industries Limited closed at Rs 3,413 on Friday, slipping around 1 percent as compared to the previous closing levels of Rs 3,446.25 apiece.

Having a look at the financials of the agrochemicals manufacturer, the prime indicators such as the operating revenues, as well as after-tax profits, increased with the former moving up from Rs 5,299.5 crores during FY21-22 to Rs 6,492 crores during FY22-23, and, the latter shifting from Rs 843.8 crores to Rs 1,229.5 crores keeping the timeframe the same. 

In addition, the profitability ratios rose with the return on equity (RoE) increasing from 14.71 percent during FY21-22 to 18.45 percent during FY22-23, and, the return on capital employed (RoCE) taking a shift from 17.4 percent to 21.84 percent. 

Written by Amit Madnani

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