Kemp & Co. (506530)

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

Key Financials

Strengths

• P/B of 0.48 means the market cap of ₹110 Cr is only about 48% of stated book value of ₹2,010.64 per share, an asset-based margin of safety.
• Current price of ₹967.50 is well below the 52-week high of ₹1,530.00, so expectations are already subdued.
• Sales decline is only -1.33%, suggesting the revenue base has not collapsed even though profitability is negative.
• Small market cap of ₹110 Cr makes this a neglected, under-covered name where patient investors can potentially find mispricing.

Concerns

• ROE is -0.72% and ROCE is -0.80%, showing the company is earning negative returns on both equity and capital.
• Profit growth is -204.55%, and the latest quarter shows net loss of ₹1 Cr on sales of just ₹1 Cr, so there is no earnings support.
• Piotroski F-Score of 2/9 reflects very weak financial health and likely deterioration across profitability, leverage, or efficiency.
• Promoter holding is not disclosed and there is no dividend, leaving minority shareholders without visibility on ownership alignment or cash return.

AI Analysis

Let me look at Kemp & Co. through Graham's lens. The first thing I see is a stock selling at ₹967.50 while the stated book value is ₹2,010.64 per share. That is a P/B of 0.48, so I would be buying less than 50 paise for a rupee of stated net assets. In an asset play, that gap provides my margin of safety. But I cannot stop there. A business must earn a return on those assets. Kemp's ROE is -0.72% and ROCE is -0.80%, meaning the company is destroying value, not compounding it. Sales slipped 1.33% and profit growth collapsed by 204.55%. The latest quarter shows sales of just ₹1 Cr and a net loss of ₹1 Cr. With a Piotroski F-score of 2 out of 9, almost every fundamental signal is frail. There is no dividend to reward me while I wait. Promoter holding is undisclosed, so I cannot judge insider alignment. As Buffett often says, it is far better to buy a wonderful business at a fair price than a fair business at a wonderful price. This is not a wonderful business today; it is a weak operation selling below book. The book value may be a real asset, but if losses continue, that cushion gets eaten away. Market cap is only ₹110 Cr, so this is a small, possibly neglected name. That can be an opportunity, but it can also be a trap. I would need a credible turnaround plan, evidence that earnings are inflecting, and more information on the composition and realizability of those assets. Until then, Graham would tell me that a cheap stock with negative earnings and a 2/9 Piotroski score is not a value proposition; it is a speculation. I'll keep it on my watchlist, but not in my portfolio.

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