Envair Electrody (500246)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Piotroski F-Score of 6/9 signals moderate financial health, not acute distress.
• ROCE of 2.25% is positive, showing some return on capital employed, albeit inadequate.
• Reported profit growth of 103.28%, though from a negligible base, indicates an improving earnings trend on paper.

Concerns

• Latest quarter sales are ₹0 Cr and net profit is ₹0 Cr, so there is no operating earnings engine.
• Stock trades at 7.59 times book value of ₹20.58, leaving no margin of safety.
• ROE is negative at -0.11% and dividend yield is 0%, so shareholders earn no return.
• Critical data are missing: promoter holding is N/A, debt/equity is N/A, and FairStock Score is insufficient.

AI Analysis

As a value investor, I first ask whether the business earns real money over time. Envair Electrody, an industrial-products micro-cap, does not appear to meet that test today. Its latest quarter shows sales of ₹0 crore and net profit of ₹0 crore. There is no earnings power to analyse. The reported profit growth of 103.28% is meaningless off an absolute zero or negligible base; a small swing from a loss to a tiny profit can create such a percentage. Return on equity is negative at -0.11%, and ROCE is only 2.25%, so the company is not generating an acceptable return on either equity or capital employed. The Piotroski F-Score of 6/9 suggests the balance sheet is not highly stressed, but a moderate score cannot substitute for a moat. Now look at the price. The stock trades at ₹156.20, or 7.59 times book value, while the book value is only ₹20.58 per share. With no P/E ratio because earnings are absent, and no dividend yield, the valuation is supported only by hope, not by cash flows. The 52-week range of ₹36.68 to ₹156.20 reveals a dramatic rise for a company with zero reported revenue. That rally is typical of speculative retail enthusiasm, not of a Graham-style bargain. Debt-to-equity is not available, promoter holding is not available, and the FairStock score is insufficient; in other words, the data is incomplete for a careful owner. I cannot intelligently value a business with no current sales and no profit. If operations genuinely restart, I would need to see several quarters of real revenue, positive earnings, and improving returns on capital. Until then, this is a show-me story. I would keep it on the watchlist and not pay ₹156.20 for a ₹20.58 book value with no demonstrated profitability.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer