Lerthai Finance (502250)

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

Key Financials

Strengths

• Book value of ₹137.60 per share provides some recorded tangible asset backing.
• Market cap is small at ₹31 Cr, leaving room for focused operational revival if new business emerges.
• Latest quarter net loss is negligible at ₹-0 Cr, suggesting no immediate large cash burn.
• Stock trades near the lower end of its 52-week range, reducing prior speculative euphoria.

Concerns

• Zero sales and zero earnings make the P/E meaningless and leave no operating business to value.
• ROE of -1.83% and ROCE of -1.48% show the company is destroying book value.
• Piotroski F-Score of 2/9 signals weak financial health and likely deterioration.
• Price-to-book of 3.05 for an unprofitable company offers no margin of safety; there is no dividend and promoter/debt data are unavailable.

AI Analysis

Let me start with what the numbers tell me: at ₹419.50, this ₹31 crore company has no earnings, no sales, and no dividend. The P/E is meaningless because there is zero 'E'. Book value is ₹137.60, yet I am asked to pay 3.05 times that for a business earning -1.83% on equity and -1.48% on capital. That is a contradiction in my discipline: a poor return on assets should deserve a discount, not a premium. Growth is no help either. Sales growth is 0.00%, and profit growth has fallen 600%. The latest quarter shows sales of ₹0 crore and a marginal loss, so there is no operating engine, no recognizable moat, and no pricing power. The Piotroski score of 2 out of 9 reinforces a weak financial health signal. Debt/equity is not available, so I cannot even assess leverage. Promoter holding is also not available; I want owners with skin in the game. The only comfort is book value of ₹137.60, but at ₹419.50 the price already capitalizes that and more. Benjamin Graham taught to buy with margin of safety; here, I see no margin. It is near its 52-week low, but cheapness in price is not cheapness in value when the business is losing money. This is a speculation, not an investment. I would wait for tangible evidence of turnaround: real sales, positive ROE, and a price that respects book value. Until then, it belongs in the too-hard pile.

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