Banganga Paper (512025)

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

Key Financials

Strengths

• ROCE of 26.95% shows the operating capital is generating returns; the business may not be intrinsically unprofitable.
• Latest quarter sales of ₹20 Cr indicate a real revenue base, not a dormant shell.
• Sales decline is only -4.97%, so the top line is relatively stable despite the 90.79% profit collapse.

Concerns

• P/E of 379.43 and P/B of 353.70 leave no margin of safety; book value is just ₹0.50 per share.
• Profit growth -90.79% and latest quarter net profit of ₹0 Cr mean earnings have vanished; ROE -1.31% confirms shareholder value erosion.
• Piotroski F-score of 3/9, zero dividend, and unavailable Debt/Equity and promoter holding make balance sheet and governance unverifiable.

AI Analysis

At ₹176.85, Banganga Paper is not an investment; it is a speculation wearing a stock price. The market cap is ₹216 crore, yet book value is only ₹0.50 per share. That means I pay 354 times the accounting assets, and I receive no dividend while waiting. A P/E of 379.43 tells me earnings have almost vanished. Profit growth is down 90.79% and the latest quarter shows ₹20 crore of sales but zero net profit. The company is barely breaking even. Sales are also shrinking, down 4.97%. The Piotroski F-score of 3/9 reinforces the picture of weak financial health. ROCE of 26.95% is the one number that raises a question. Capital employed seems to produce a good operating return, but ROE is -1.31%. That gap suggests the problem may be leverage, interest, or a capital structure that erases operating profits. With Debt/Equity not available and promoter holding not disclosed, I cannot underwrite this balance sheet. Without those numbers, I cannot know how much risk is hidden. The share has run from ₹31 to ₹176.85 in 52 weeks. The market is pricing in a dramatic recovery that the latest quarter has not delivered. As Graham said, price is what you pay; value is what you get. At this price, I get negative return on equity, no dividend, collapsed profits, and a book value cushion of almost nothing. Even if this is just a cyclical low, I need a strong balance sheet and evidence of improving earnings before paying such a price. This is a pass.

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