Ishwarshakti Hol (506161)

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

Key Financials

Strengths

• Trades at a steep discount to stated book value: price ₹3.19 vs book value ₹9.63 (P/B 0.33).
• Trailing P/E of 2.77 is statistically very cheap relative to reported earnings.
• ROE of 18.41% suggests historically decent return on equity if the reported figures are credible.
• Stock is at the low end of its 52-week range (₹3.19-₹4.78), so much pessimism may already be priced in.

Concerns

• Latest quarter shows sales of ₹0 Cr and net profit of ₹-0 Cr, indicating no active earning business.
• ROCE is negative at -5.26%, while Piotroski F-Score is a weak 3/9, pointing to poor financial health.
• Zero dividend, zero growth, and undisclosed promoter holding reduce transparency and shareholder friendliness.
• Debt/Equity is N/A and market cap is effectively negligible, making it difficult to assess leverage and liquidity risk.

AI Analysis

At ₹3.19, Ishwarshakti Hol trades at one-third of its ₹9.63 book value and just 2.77 times earnings. On the surface, this is a Graham-style bargain. But Graham also taught us to look behind the numbers. The latest quarter shows sales of ₹0 Cr and net profit of ₹-0 Cr — that is not an operating NBFC; it is a corporate shell. The 18.41% ROE looks attractive, but ROCE is negative at -5.26%, and with debt-to-equity not available, I cannot assess the leverage that may be driving the discrepancy. Piotroski F-score of 3/9 reinforces my caution: financial health is weak. There is zero dividend, zero growth, and promoter holding is undisclosed. At the 52-week low of ₹3.19, the market is telling us something. A P/B of 0.33 can be a margin of safety if the book value is real and the company can be liquidated at close to book. But if assets are stressed or stale, the book value is just an accounting number. This is not a wonderful business at a fair price; it is a questionable business at a cheap price. I would not touch it without audited financials, a clear explanation of how ROE was earned with no current revenue, and evidence that management allocates capital honestly. In Buffett's language, 'Turnarounds seldom turn.' Here I see no clear path to growth or profitability. The only reasonable angle is an asset play: buy below tangible book, wait for liquidation or a revival. But I would need a much deeper margin of safety and control-like governance. For a retail investor, this is closer to speculation than investing.

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