Dalal Street Inv (501148)

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

Key Financials

Strengths

• Positive ROCE of 2.65% at the capital-employed level
• Tangible book value of ₹182.43 per share provides a base to measure future performance
• Price near the 52-week high suggests current market interest

Concerns

• Negative ROE of -9.17% and profit growth of -238.46% indicate deteriorating economics
• P/B of 2.52 means paying more than two and a half times book value for a loss-making entity
• Piotroski F-score of 3/9 reflects weak financial health
• Zero sales, no dividend, undisclosed promoter holding, and a ₹14 Cr micro-cap add uncertainty

AI Analysis

Applying Graham's discipline, I first ask: what am I buying? Dalal Street Inv is an investment company with zero reported sales and a latest quarter net profit of -₹0 Cr. At ₹460, the market cap is only ₹14 Cr, but book value is ₹182.43 per share, so I would be paying 2.52 times net assets. That premium demands a very strong return on those assets. The numbers show the opposite: ROE is -9.17%, meaning the equity base is earning less than nothing for shareholders. Profit growth is -238.46%, so earnings have deteriorated sharply, and the Piotroski F-score of 3/9 confirms a weak fundamental position. ROCE of 2.65% is positive, but far too low to justify a 2.5x book price. There is no dividend yield, so I receive no income while waiting. This is not the kind of wonderful business compounding returns over time. It may have underlying investments, but I cannot see their quality or true liquidation value, and promoter holding is not disclosed, which adds governance uncertainty. Buffett's rule one is don't lose money; rule two is don't forget rule one. Paying ₹460 for ₹182 of book value with negative return on equity has no margin of safety. The price is near the upper end of the 52-week range of ₹299.55-₹461.60, so Mr. Market is enthusiastic, but value investors should not confuse price with value. This belongs in the too-hard pile unless the company reverses the negative earnings trend, improves ROE, and proves its assets are worth more than stated book value. I would monitor quarterly profits, asset details, capital allocation, and promoter behavior. Until then, I stay away.

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