Hathway Bhawani (509073)

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

Key Financials

Strengths

• Return on equity of 12.60% is respectable for a small-cap company.
• Piotroski F-Score of 6/9 suggests moderate financial health, not acute distress.
• Reported profit growth of 175% and PEG of 0.25 indicate possible earnings revival, if sustained.
• Stock price is at the top of its 52-week range, showing strong recent market momentum.

Concerns

• Sales growth is negative at -1.69%, and latest quarterly net profit is ₹0 Crore on just ₹1 Crore sales.
• P/E of 43.13 and P/B of 7.51 offer little margin of safety at the current price of ₹20.50.
• ROCE of only 3.38% points to weak capital productivity and limited competitive strength.
• No dividend and a tiny ₹17 Crore market cap make this a high-risk, speculative holding.

AI Analysis

At ₹20.50, Hathway Bhawani has a market cap of just ₹17 Crore, so I must remember I am looking at a microcap, where liquidity and volatility can be brutal. The market is paying 43 times trailing earnings and 7.5 times book value for a business whose sales have actually fallen 1.69%. That is not the starting point Ben Graham would endorse. The apparent profit growth of 175% looks impressive, but with latest quarterly net profit of ₹0 Crore on sales of ₹1 Crore, the quality and sustainability of that profit jump is questionable. PEG of 0.25 incorrectly assumes consistent growth that history does not show. ROE of 12.60% is respectable, but ROCE of only 3.38% reveals poor underlying capital productivity; this may be a small broadcaster with no pricing power and no moat. There is no dividend, so shareholder returns depend entirely on capital appreciation. The stock sits at the top of its 52-week range, having climbed from ₹9.80, which is precisely when caution is needed. Book value of ₹2.73 offers thin support at 7.51 times book. Piotroski F-Score of 6/9 indicates moderate financial health, not a disaster, but not a gem. I cannot label this a fast grower because sales are contracting; with a zero-profit latest quarter, I struggle to call it a stalwart. This looks more like a tentative turnaround priced for perfection. If the company can convert revenue stability into real, repeatable profits, there may be value, but at current price, Mr. Market is paying for future miracles. As Buffett would say: it is far better to buy a wonderful business at a fair price than a mediocre business at a wonderful price. This is not a wonderful business.

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