Jamshri Realty (502901)

FairStock Score: 8/100 — RISKY

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

Key Financials

Strengths

• Positive ROE at 10.15% indicates some surplus generation on equity.
• Piotroski F-Score of 6/9 suggests financial health is better than many deeply distressed small caps.
• Quarterly sales of ₹2 Cr, though tiny, shows at least some ongoing operating activity.
• Reported profit growth of 114.71% indicates an improved year-on-year bottom line, albeit from a weak base.

Concerns

• Market cap of ₹10,973 Cr against latest quarterly sales of ₹2 Cr implies an extraordinarily speculative valuation with no support from earnings.
• P/E of 0.00 and unavailable book value/P/B mean there is no measurable earnings yield or asset-backing to calculate a margin of safety.
• Sales growth is negative at -3.70%, and ROCE of 3.08% shows poor return on capital employed.
• Zero dividend and undisclosed promoter holding leave shareholders with no income cushion and no visibility on insider conviction.

AI Analysis

As a value investor, I ask three questions: What is the business worth? What is the quality of its earnings? And what is the margin of safety? Jamshri Realty fails all three before I can even get to valuation. The market cap is ₹10,973 crore, yet the latest quarter shows sales of just ₹2 crore and net profit of ₹0 crore. Even annualising that modest sales number gives about ₹8 crore — meaning the stock is changing hands at an almost incomprehensible multiple of sales. The P/E is zero because earnings are zero or negligible; there is no earnings power to appraise. ROE of 10.15% looks respectable on the surface, but ROCE of only 3.08% tells me management is not earning an attractive return on the capital employed in the business. Sales have declined by 3.7%, not the hallmark of a growing enterprise. The 114.71% profit growth sounds impressive, but it is meaningless when the latest quarter net profit is nil — this is a small-base distortion, not a durable trend. The Piotroski score of 6/9 hints at decent financial health, but with debt/equity and book value not available, I cannot verify the balance sheet or asset backing. There is no dividend, so shareholders are depending entirely on price appreciation. And what a price move: from ₹68 to ₹15,705.50 in a 52-week window. That is not my definition of investment; it is speculation. In Ben Graham's words, 'The investor's chief problem — and even his worst enemy — is likely to be himself.' Without clarity on land value, book value, promoter holding, or genuine earnings, I cannot place any faith in this stock. I need a margin of safety. Here, I find none. This is a pass.

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