Addi Industries (507852)

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

Key Financials

Strengths

• Price-to-book of 0.68 means the market price is 32% below stated book value of ₹72.18 per share.
• The stock is available at ₹49 against a book value of ₹72.18, providing a margin of safety if book values are credible.
• Small market cap of ₹53 Cr keeps the company out of institutional focus but also leaves room for asset-value discovery.
• The investment case is not dependent on optimistic growth forecasts; it is a balance-sheet-driven opportunity.

Concerns

• Latest quarter sales and net profit are both ₹0 Cr, indicating no visible operating income.
• Profit growth is down 74.53%, and ROE of 3.51% / ROCE of 5.51% show poor capital efficiency.
• Piotroski F-Score of 3/9 points to weak financial fundamentals.
• Current price of ₹49 is below the stated 52-week range of ₹84–141.25, a serious red flag regarding price action or data reliability.
• There is no dividend yield, so shareholders receive no income while waiting for value to emerge.

AI Analysis

At ₹49, Addi Industries is a Graham-style asset situation: you get ₹72.18 of book value per share at a 32% discount, a P/B of 0.68. But a low P/B only matters if management can turn assets into earnings or unlock value. Here the operating engine is silent—the latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr, and profit growth has collapsed by 74.53%. Therefore the headline P/E of 38.96 is meaningless; it is a distressed-earnings multiple, not evidence of growth. ROE is only 3.51% and ROCE 5.51%, neither of which clears a satisfactory hurdle. The Piotroski score of 3/9 reinforces that the financial condition is weak. There is no dividend, so the patient investor is not being paid while waiting. Curiously, the current price of ₹49 sits below the stated 52-week range of ₹84–141.25, a sign of either severe market rejection or data inconsistency; I must respect the price action. This is not the wonderful business at a fair price that I prefer. It is a balance-sheet asset selling at 68 paise to the rupee, but assets only create value when they generate earning power or are deliberately realised. I do not see that engine today. Following Graham, I need a catalyst: a management that allocates capital rationally, sells assets, or restores operations. Without that, the discount to book value can persist or widen. I would keep this on a watch list, not in the core portfolio.

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