India Homes (513361)

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

Key Financials

Strengths

• Positive book value of ₹0.89 per share provides some tangible asset support.
• Reported profit growth of 112.54% shows improvement, though from a loss-making base.
• Price of ₹3.80 is far below the 52-week high of ₹25.64, reducing the prior speculative premium.
• Piotroski F-score of 5/9 is not catastrophic; it indicates mixed rather than uniformly weak financial signals.

Concerns

• Latest quarter has zero revenue and zero net profit; sales growth is 0.00%.
• ROE of -22.67% and ROCE of -8.76% indicate ongoing destruction of shareholder capital.
• P/B of 4.27 means paying over four times book value for a loss-making commodity business.
• Current price of ₹3.80 sits below the stated 52-week low of ₹9.04, a serious data inconsistency or negative market signal.

AI Analysis

Let me begin with a simple truth: a business that earns nothing is not an investment. India Homes, despite its name, operates in iron and steel, a commodity business with no pricing power and no economic moat. The latest quarter reports ₹0 Cr sales and ₹0 Cr net profit. This is not a temporary blip; the returns on capital are deeply negative. ROE is -22.67% and ROCE is -8.76%, meaning every rupee employed is destroying value. Book value is only ₹0.89 per share, yet the market price is ₹3.80. That is a price-to-book of 4.27, so you are paying a 327% premium over tangible assets for a company that cannot generate sales. The so-called profit growth of 112.54% is a statistical illusion from a loss-making base. A positive profit improvement means little when the latest quarter is still zero. The stock currently sits at ₹3.80, below the lower end of the stated 52-week range of ₹9.04 to ₹25.64. That discrepancy is a red flag; it tells me either the data is unreliable or the market has lost confidence completely. There is no dividend, promoter holding is not disclosed, and the Piotroski F-score of 5/9 is mediocre, not a sign of financial strength. As Graham warned, price is what you pay, value is what you get. Here the price is higher than book value for a business with no sales, no earnings, and negative returns. This is not a margin of safety; it is a speculation on a future turnaround. I would only revisit after seeing sustained revenue, positive operating profits, and a market price at a meaningful discount to book. Until then, India Homes fails every value test.

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