Mathew Easow Res (511688)

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

Key Financials

Strengths

• Trades at 0.47 P/B against book value of ₹21.40, offering a large stated margin of safety.
• Positive book value per share of ₹21.40 provides a tangible asset anchor for further investigation.
• Small market cap of ₹9 Cr may attract corporate action or asset realisation if book value is recoverable.
• Latest quarter still shows sales of ₹1 Cr, indicating an operating entity rather than a shell.

Concerns

• Sales growth of -13.25% and profit growth of -50% show a shrinking franchise.
• Latest quarter net profit is ₹0 Cr, and ROE is only 0.51%, meaning negligible earnings power.
• Piotroski F-score of 3/9 signals weak and deteriorating financial health.
• No dividend, no promoter holding data, and no debt-to-equity information create serious transparency gaps.

AI Analysis

Reading the numbers from the outside, I do not need much time to classify this as a candidate asset play, not a compounder. Mathew Easow Res has a market cap of ₹9 Cr and a book value of ₹21.40 per share, yet the market price is only ₹10.06. That means the stock is selling at 0.47 times book. My old Graham discipline tells me a meaningful discount to book can be a source of safety. But the safety is only real if the assets on the balance sheet are honestly stated and the business can eventually convert them into earnings or cash. The operating evidence here is weak. Return on equity is just 0.51%, and ROCE is 4.76%, so the franchise earns far less than an ordinary business needs. Latest quarter sales are ₹1 Cr, net profit is ₹0 Cr. Trailing profit creates a P/E of 122 times, which is absurd for a company shrinking at this pace. Sales declined 13.25%, profit fell 50%, and the Piotroski F-score is only 3/9, telling me financial health is deteriorating. There is no dividend, no promoter holding data, and no debt-to-equity information, which makes independent verification even more important. I cannot rely on growth because there is none. I can only rely on whether the book value is solid and recoverable. This is the classic 'cheap for a reason' situation. A bargain price is not enough by itself; the assets must earn a satisfactory return over time. With ROE near zero, the business is not creating value for shareholders today. I would treat this not as a business purchase, but as a possible balance-sheet purchase. If the loan book is clean and assets can be realized near book, the discount may work. If not, the ₹10.06 price could still be expensive. I need more information, but based strictly on these figures, I would keep it on a watch list, not in my portfolio.

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