Svaraj Trading (503624)

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

Key Financials

Strengths

• Price-to-book of 0.23 gives a wide margin of safety on stated book value
• Book value per share of ₹43.18 is over 4 times the current market price of ₹9.85
• Market cap of ₹15 Cr is small, leaving scope for a future corporate action or asset realisation
• Listed on NSE/BSE provides a trading platform and price discovery

Concerns

• ROE is only 0.63% and ROCE is negative, showing minimal or no economic return on assets
• Sales are ₹0 and latest quarterly net profit is ₹0 — no operating business generating income
• Profit growth is down 46.67% and Piotroski F-score is 2/9, indicating weak financial fundamentals
• Promoter holding is not disclosed, creating transparency and governance risks

AI Analysis

At ₹9.85, this stock sells at a 77% discount to book value of ₹43.18 — a P/B of 0.23. Graham would smile, but then he would ask: is this asset backing real and can it be realized? Svaraj Trading is not a business in the normal sense. Sales are ₹0, latest net profit is ₹0, and ROE is just 0.63%. The company is earning almost nothing on its equity. ROCE is negative at -1.40%, and profit growth has fallen 46.67%. A Piotroski F-score of 2/9 is a strong red flag for financial health. I am effectively buying a box of assets, not an earning machine. With market cap of only ₹15 Cr and a P/E of 30.08, the earnings are negligible, so the low P/B is the only real attraction. But low P/B can be a value trap if book value is overstated, stuck in non-income producing assets, or eventually eroded by expenses and bad decisions. There is no dividend, promoter holding is not disclosed, and debt position is not clear. I cannot judge capital allocation without knowing what the assets are and whether management has any incentive to unlock value for minority shareholders. This is not a stalwart or a grower; it is an asset play with a wide safety margin on paper but a very uncertain path to realization. I would not act on the figures alone; I would demand far more transparency before investing a rupee.

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