Naperol Invest. (500298)

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

Key Financials

Strengths

• Book value of ₹3,338.95 per share is far above the market price of ₹1,139.10, giving a P/B of 0.34.
• Market cap of ₹700 Cr is significantly below stated net worth, offering a potential margin of safety if asset values are reliable.
• Dividend yield of 1.42% provides modest shareholder return while the asset discount remains unresolved.
• As an investment company, the operating model avoids manufacturing or cyclical capital expenditure complexity.

Concerns

• ROE of 0.51% and ROCE of 1.06% show the asset base earns almost no return for shareholders.
• Profit growth of -130.77% and latest quarter net loss of ₹1 Cr indicate deteriorating earnings power.
• Sales growth of -26.62% with latest quarterly sales of only ₹1 Cr reflects a shrinking or stagnant business.
• Piotroski F-Score of 3/9 and FairStock Score of 0/100 signal weak financial health and high risk.

AI Analysis

As a value investor, I first look at whether the market price is lower than the intrinsic worth. Naperol Invest's price of ₹1,139.10 against a book value of ₹3,338.95 gives a P/B of 0.34. That means I am being asked to pay only 34 rupees for every 100 rupees of stated net worth. Attractive on its face. But then I turn to earnings. ROE is a mere 0.51% and ROCE is only 1.06%. A company that earns almost nothing on its asset base is not a wealth compounder. Sales have fallen by 26.62%, profit growth has dropped by 130.77%, and the latest quarter shows ₹1 crore of sales and a ₹1 crore loss. This is not a growing franchise; it is a holding company with a large stated balance sheet and minimal income. The P/E of 39.29 is meaningless when profits are collapsing. With a Piotroski F-score of 3/9 and a FairStock Score of 0/100, I see caution flags in financial health. The dividend yield of 1.42% provides a little comfort, but I must question whether the book value is real and mark-to-market, or stale. Benjamin Graham would call this a possible asset play, but only after deep diligence. I would need to know the underlying investments, their liquidity, and management's ability to unlock value. Until then, a low P/B is not enough; I need earning power or a clear catalyst.

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