Elpro Internatio (504000)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• Trades at ₹96.20 versus book value of ₹115, giving a P/B of 0.84 and a margin of safety if asset values are realistic.
• Low trailing P/E of 7.72 and PEG of 0.00 make the stock statistically cheap on reported earnings.
• Piotroski F-Score of 7/9 suggests improving financial health and a lower risk of balance-sheet distress.
• Latest quarter net profit of ₹94 Cr on sales of ₹189 Cr shows strong recent project-level cash conversion.

Concerns

• ROE of just 1.36% and ROCE of 5.24% indicate poor underlying returns on capital despite headline growth.
• Sales growth of 2,825.9% and profit growth of 546.03% are likely low-base or project-recognition effects, not recurring business momentum.
• A 49.7% net margin in the latest quarter is unlikely to be sustainable for a residential and commercial project developer.
• Debt/Equity is not disclosed, and dividend yield is low at 0.82%, so shareholders are not compensated while waiting for value to unlock.

AI Analysis

Putting Elpro on my desk gives me two very different pictures. One glance: price ₹96.20 against book value ₹115, P/E 7.72, and Piotroski score 7/9. That looks like a bargain-priced, financially improving enterprise. The other glance: ROE 1.36%, ROCE 5.24%. The book is earning almost nothing. As Graham taught, assets can be worth more in liquidation than in continued operation, but I am buying earning power, not just a balance sheet. The 2,826% sales growth and 546% profit growth may excite many buyers, but those numbers are meaningless if they are a one-time project completion. A quarterly net profit of ₹94 crore on sales of ₹189 crore is a 49.7% margin—that is not a recurring margin in property development; it smells like revenue recognition and pending project handovers. The P/E of 7.72 and PEG near zero are statistical illusions if the denominator is a cyclical peak. For a property company, the right price is tied to net asset value and the ability to convert land into cash at realistic prices. At 0.84 times book, an investor gets a margin of safety if the stated book is true and productive. But with such low return on equity, I have to wonder whether the book is earning-capable or dormant stock. Dividend yield 0.82% means I am not being paid while I wait. I cannot classify this as a wonderful compounding machine. It is a cyclical asset play in an uncertain real estate cycle, with a strong F-score hinting that balance sheet stress is not the immediate issue. I would not buy merely because of the low P/E; I need proof that recent earnings repeat and that capital is being deployed at acceptable returns.

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