Stanrose Mafat. (506105)

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

Key Financials

Strengths

• Trades at a 36% discount to book value of ₹131.25 per share
• Price-to-book of 0.64 provides a potential margin of safety if assets are sound
• Small market cap of ₹34 Cr allows room for value-unlocking events
• Recent price near 52-week high suggests some investor interest

Concerns

• Negative ROE of -5.69% and ROCE of -4.69% indicate value destruction
• Piotroski F-score of 2/9 points to weak financial health
• Latest quarter shows net loss of ₹1 Cr on sales of just ₹1 Cr
• No dividend and stagnant sales with declining profit growth

AI Analysis

Stanrose Mafat presents an interesting but troubling puzzle. The market capitalises the company at just ₹34 Cr, while the book value stands at ₹131.25 per share. That puts the price at a 36% discount to stated net worth. In Graham's language, that is a margin of safety. But as an investment company, the worth of the balance sheet depends entirely on the quality and liquidity of its assets. The figures I see do not comfort me. Return on equity is -5.69%, and ROCE is -4.69%. The latest quarter saw sales of ₹1 Cr and a net loss of ₹1 Cr. Profit growth has declined further by 1.15%. This is a business destroying value, not creating it. The Piotroski F-score of 2 out of 9 is a red flag. It suggests deteriorating fundamentals, weak profitability, and possibly stressed working capital. There is no dividend to reward patience. I do not see a moat here; this is a shell or a holding company whose assets must be assessed item by item. A low P/B is only a good sign if the book value is real and recoverable. I would need to see the investment portfolio, the marketable securities, and any hidden liabilities. The fact that debt-to-equity is not available reminds me to be even more sceptical. Without earnings power, I should not rely on book value alone. At the right price, it could be an asset play. But at ₹84, near the 52-week high, I would rather wait for a deeper discount or event that unlocks value. For now, this is a cautious pass.

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