Sh. Krishna Pap. (500388)

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

Key Financials

Strengths

• Piotroski F-Score 7/9 suggests recent operational and balance-sheet health is reasonable.
• Sales growth of 24.12% shows demand traction despite the cyclical paper industry.
• PEG ratio of 0.65 indicates that if profit growth is sustainable, the valuation may not be expensive.
• Book value of ₹25.03 provides a rough asset floor; current price is only 1.6x book.
• Small market cap of ₹54 Cr leaves room for niche expansion if managed prudently.

Concerns

• Latest quarter net profit is ₹0 Cr despite sales of ₹50 Cr, raising serious earnings-quality concerns.
• P/E of 51.44 is steep for a commodity paper maker with cyclical earnings.
• Zero dividend yield means no income support while waiting for a turnaround.
• 52-week range of ₹29.70 to ₹135.20 shows extreme price volatility and possible earnings collapse.
• Debt/equity and promoter holding are not available, limiting transparency on leverage and ownership.

AI Analysis

This is a small, commodity paper maker with a market cap of just ₹54 Cr, trading at ₹40.10 against a book value of ₹25.03. That means I am paying 1.6 times tangible book for a business earning only 9.27% on equity and 8.72% on capital. In Graham's language, there is no clear margin of safety here. Paper is a cyclical, price-taking business; I see no durable moat. The 52-week range tells the story: from ₹135.20 down to ₹29.70 and now ₹40.10. That kind of swing is not the hallmark of a stable franchise. Yes, sales grew 24.12% and profit reportedly grew 135%, and the PEG ratio of 0.65 looks tempting. But the P/E is 51.44, so absolute earnings are still thin. More worrying, the latest quarter shows sales of ₹50 Cr and net profit of ₹0 Cr—zero. A business can show annual growth optics while the current quarter earns nothing. I cannot rely on trailing profit growth if the most recent quarter is empty. The Piotroski F-Score of 7 out of 9 is a positive sign that recent operations are not deteriorating, but it is not enough. There is no dividend yield, so I get no income while I wait. Debt/equity and promoter holding are not disclosed, which violates Graham's insistence on knowing who owns the business and how leveraged it is. Price near book offers some support, but an asset play needs liquid assets and honest management. I need sustained earnings, not one-year optics. I will wait on the sidelines until this cyclical proves it can earn at the bottom of the cycle.

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