Dhenu Buildcon (501945)

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

Key Financials

Strengths

• Profit growth of 1000% exists, albeit from a very small base.
• PEG of 1.00 would suggest the high P/E is matched by stated profit growth, but only if that growth is sustainable.
• Piotroski F-Score of 5/9 is not a failing score and indicates some balance-sheet positives.
• Latest quarter shows ₹1 crore net profit, implying at least some recent earnings generation.

Concerns

• P/E of 1000 and P/B of 250 with book value of only ₹0.01 imply an extreme overvaluation versus tangible assets.
• ROE of 1.75% and ROCE of -0.08% show poor returns on both equity and capital employed.
• Sales growth is 0%, dividend yield is 0%, and promoter holding is undisclosed, leaving no visible shareholder-friendly catalyst.
• Data inconsistencies—such as price below the 52-week range and quarterly profit of ₹1 crore against a P/E implying far lower annual earnings—make the numbers unreliable.

AI Analysis

Let’s start with the facts. Dhenu Buildcon is a micro NBFC with a market cap of just ₹5 crore and a share price of ₹2.50. For that, you get book value of ₹0.01 per share. That means the market is pricing the company at 250 times its net worth—while the business earns an ROE of only 1.75%. In other words, you are paying a huge premium for a business that earns less than a bank fixed deposit. The P/E of 1,000 reinforces the point: even if all profits were distributed, it would take a millennium to earn back your price. The 1,000% profit growth sounds exciting, but it is from a microscopic base and comes with 0% sales growth. The latest quarter shows ₹1 crore sales and ₹1 crore profit—a 100% net margin, which is not a sign of a healthy lending or investing business; it is a red flag. Negative ROCE of -0.08% confirms that the core operations are not earning their cost of capital. The Piotroski score of 5/9 is moderate, but with promoter holding not disclosed and debt/equity not available, I cannot judge whether insiders are aligned or whether leverage is being hidden. The reported price of ₹2.50 sits below the 52-week range of ₹5.67 to ₹9.94, which is highly unusual and suggests stale or unreliable quotes. As Graham said, the stock market is a voting machine in the short run and a weighing machine in the long run. This business weighs almost nothing. There is no moat, no scale, no dividend, and no margin of safety. I would file this under 'too hard' and move on.

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