Starsource Multitrade (506365)

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

Key Financials

Strengths

• Price of ₹69.48 is well below book value of ₹97.45, giving a P/B of 0.71 and a possible margin of safety if assets are worth carrying values.
• ROCE of 5.17% is positive, suggesting some existing capital is earning a modest return even with no reported sales.
• Piotroski F-Score of 6/9 indicates more fundamental metrics are positive than negative.
• Small market cap of ₹11 Cr may leave room for asset unlocking if management acts in minority shareholders' interest.

Concerns

• Latest quarter sales are ₹0 Cr and net profit is ₹-0 Cr, meaning there is no operating earnings stream to support any equity valuation.
• ROE of -88.84% implies severe annual destruction of shareholder equity, making the ₹97.45 book value unreliable as a safety net.
• P/E of 0.00 and zero dividend yield mean there is no income return or earnings multiple to anchor valuation.
• Promoter holding is N/A and the current price is below the 52-week low of ₹75, reflecting poor transparency and deep market skepticism.

AI Analysis

Let me start with the obvious: I cannot value a business with zero sales. Starsource Multitrade shows latest quarterly sales of ₹0 Cr and net profit of ₹-0 Cr. The P/E is zero because there are no real earnings to put in the denominator. In Buffett's world, price is what you pay and value is what you get; here I struggle to find value from operations. The only intriguing figure is book value of ₹97.45 per share against a price of ₹69.48, so the stock trades at 0.71 times book. Graham taught us to seek a margin of safety, and a price below book can be one. But that safety disappears if book value is being destroyed. ROE is -88.84%, meaning the company is losing roughly 89 paise for every rupee of equity each year. At that rate, the stated book value is not a floor; it is a sinking floor. The reported profit growth of 47.06% is meaningless with sales of zero. ROCE of 5.17% is modest at best, and the 6/9 Piotroski score offers faint encouragement, but it does not offset the absence of a business. This looks like a possible asset play, a cigar butt with one puff left, not a compounder. With a ₹11 Cr market cap, it is also a microcap, which limits institutional scrutiny. I would not speculate here without access to audited balance sheet details. I need to know what assets exist, whether they are real and liquid, and whether management has any intention of returning capital to shareholders. Until then, the market price below book is an invitation to investigate, not a reason to buy.

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