Konark Synth (514128)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 indicates some fundamental stability across profitability, leverage, and efficiency checks.
• ROCE of 5.94% is positive, suggesting capital employed still generates a modest operating return.
• Reported profit growth of 200% shows bottom-line improvement, though from a negligible base.
• Latest quarter net profit of ₹0 crore is breakeven, not an accelerating loss.

Concerns

• P/B of 3.86 with ROE of -93.35% means paying a rich premium to book value for a business destroying shareholder equity.
• Sales growth is -19.42%, and latest quarterly sales are only ₹12 crore, showing shrinking demand.
• P/E of 0.00 and net profit of ₹0 crore mean there are no current earnings to support the valuation.
• No dividend, zero promoter-holding disclosure, and no debt/equity data leave governance, leverage, and shareholder returns opaque.

AI Analysis

Let me begin with what this is not: a wonderful business. Konark Synth is a ₹13 crore microcap in other textile products, with no evident brand, pricing power or moat. A Graham disciple first asks whether earnings support price. The P/E reads 0.00, and the latest quarter shows net profit of ₹0 crore on sales of ₹12 crore. Even if this is a cyclical low, the trailing result produces no earnings. Meanwhile, book value is ₹5.90 per share, yet the market demands ₹22.78—3.86 times book. For a business earning -93.35% return on equity, paying nearly four times book is an act of faith, not analysis. The 19.42% decline in sales reinforces that demand is shrinking. The reported 200% profit growth sounds exciting until you remember that a negligible base can make any percentage movement meaningless. ROCE of 5.94% is barely positive, but with negative ROE and no debt/equity disclosed, the capital structure remains opaque. I also want to know who owns this company; promoter holding is N/A, so I cannot align my interests with insiders. The Piotroski F-score of 6/9 offers some comfort that not every fundamental check is failing, but it is far from a green light. There is no dividend, so the shareholder depends entirely on someone else paying a higher price. In my experience, price is what you pay, value is what you get. Here I would struggle to identify lasting value. I would rather miss this trade than lose capital trying to time a textile turnaround.

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