Nidhi Granites (512103)

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

Key Financials

Strengths

• Latest quarter shows momentum: sales ₹16 Cr and net profit ₹2 Cr, with reported profit growth of 135.11%.
• Piotroski F-Score of 7/9 points to improving financial health across profitability, leverage, and efficiency measures.
• ROCE of 16.57% suggests reasonable operating-level returns on capital employed.
• Sales growth of 15.96% shows the top line is expanding and demand is not stagnant.

Concerns

• Valuation is rich: P/E 52.49 and P/B 7.83 against book value ₹18.26, leaving no margin of safety for a small-cap cyclical.
• Reported ROE is negative at -9.31%, creating an unexplained inconsistency with positive P/E and ROCE; earnings quality needs scrutiny.
• No dividend yield, and debt/equity and promoter holding data are unavailable, reducing transparency for minority shareholders.
• Quoted 52-week range of ₹181.45-₹480.75 places current price ₹142.95 below the low, signalling either bad data or severe market distrust.

AI Analysis

At ₹142.95, Nidhi Granites is priced at ₹120 Cr in market cap. For that I get a business with book value of just ₹18.26 per share — so the market is asking me to pay 7.83 times book and 52.49 times earnings. That is not a Graham-style margin of safety. In a commoditised field like construction materials and granite, I need a clear moat to justify a premium; these numbers do not give me one. The latest quarter is encouraging: sales of ₹16 Cr and net profit of ₹2 Cr, and profit growth of 135.11% sounds wonderful. But 135% growth from a low base is not durable evidence, and a 15.96% sales growth rate is good but not extraordinary. The reported ROE is negative at -9.31%, while ROCE is 16.57%; that kind of divergence makes me suspicious of the earnings quality or the capital structure. A Piotroski F-score of 7/9 is a positive sign, and the PEG ratio of 0.69 suggests the growth is not fully overpriced if it can continue. But 'if' is the key word. There is zero dividend yield, debt/equity is not available, and promoter holding is not disclosed — so I cannot assess alignment or leverage properly. The 52-week range of ₹181.45 to ₹480.75 only deepens my caution: current price below the stated low is either a data error or a severe breakdown in the market's confidence. A small-cap granite player in a cyclical construction industry can deliver surprises, but I invest only when the numbers and the price both support a margin of safety. Here they do not. I will watch, wait, and demand a better price.

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