East Buildtech (507917)

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

Key Financials

Strengths

• Trades below stated book value: ₹31.50 price versus ₹35.59 book value, roughly 0.89x P/B.
• Positive ROCE of 7.18% suggests some capital return before financing costs, unlike a fully impaired asset.
• Microcap size of ₹6 crore means even a modest asset sale or project close-out could materially affect per-share value.
• No debt/equity figure disclosed, so there is no immediate evidence of heavy leverage to exacerbate downside.

Concerns

• Latest quarter shows zero sales, so there is no visible revenue engine supporting operations.
• ROE is deeply negative at -16.81% and profit growth is -269.23%, indicating ongoing equity erosion.
• Piotroski F-Score of 3/9 points to weak financial health and poor fundamentals.
• No dividend, zero sales growth, and undisclosed promoter holding reduce transparency and the margin of safety.

AI Analysis

Let's start with what East Buildtech is not: a business I would buy for its earning power. It has no current sales, a latest quarter of zero revenue, negative ROE of -16.81%, and profit growth down 269%. When a company earns nothing and loses equity, P/E of 0.00 is not a bargain signal; it is a warning sign. Piotroski F-score of 3/9 reinforces that. What attracted me initially is the balance sheet: ₹35.59 book value per share against a price of ₹31.50, or 0.89 times book. In a Graham sense, this is a possible asset play; you are paying a discount to stated net worth. But book value in real estate can be slippery. If projects are stalled or need capital, that stated book can shrink. ROE is already negative, so equity is being eroded. ROCE of 7.18% is modest and less meaningful in a quarter with no sales. There is no dividend, no sales growth, and promoter holding is not disclosed. A microcap with a ₹6 crore market cap can be mispriced, but it can also stay depressed, especially if assets are illiquid. I would not call this a great company at a fair price; it is a troubled asset with a possible margin of safety on book. I would want to see real evidence of asset monetisation, project execution, or a deep dive into the true salvage value of land and projects before committing capital. The odds are not in favour of a passive minority investor. In summary, it is a cigar butt—one puff perhaps—but not a compounding business. Only as a small speculative allocation for patient investors who can value underlying assets and wait.

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