UTL Industries (500426)

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

Key Financials

Strengths

• No debt on the balance sheet (Debt/Equity N/A), so financial distress risk is limited
• Piotroski F-Score of 5/9 suggests some basic financial stability despite the dormant operations
• Recent profit growth of 25%, though from a negligible base, shows a marginal improvement
• Sizable book value of ₹1.39 per share provides a tangible asset floor, albeit below market price

Concerns

• Zero sales and zero net profit in the latest quarter indicate no active business generating income
• ROE of 1.2% and negative ROCE of -2.38% show capital is being used unproductively
• P/E of 113.4 and PEG of 4.54 imply an absurd valuation for a company with no growth
• No dividend and no promoter holding disclosure reflect poor transparency and shareholder friendliness

AI Analysis

Let's call this what it is: a shell, not a business. UTL Industries reports no sales, no profit, and a negative return on capital employed of -2.38%. In my world, you buy a piece of a business's future cash flows. Here there are no cash flows to discount. The trailing P/E of 113.4 is a mirage because the 'E' is effectively zero. At ₹3.74 per share, the market values the entire company at ₹12 crore. But book value is only ₹1.39 per share, so you are paying a 169% premium over net assets. And those assets produce a pathetic 1.2% ROE. If liquidated, you might get ₹1.39, not ₹3.74. The 25% profit growth sounds interesting until you realize it's off a base so small that it rounds to zero in the latest quarter. Companies with zero sales don't have a moat; they have a hole. With no dividend, no promoter holding data, and an opaque financial situation, there is no margin of safety. The 52-week high of ₹3.74 matches the current price, which tells you momentum traders are at play, not value investors. Graham would say price is what you pay, value is what you get. Here, you get nothing. I'd rather lose an opportunity than lose money. This belongs in the 'too hard' pile. I would not invest a rupee until there is evidence of real revenues, a management with a plan, and a return on capital above the cost of capital. Until then, it's a lottery ticket with terrible odds.

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