Surbhi Industrie (514260)

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

Key Financials

Strengths

• Price-to-book of 0.10 against book value of ₹42.60 provides a deep apparent asset discount.
• P/E of 7.41 is low, suggesting the market has priced in significant pessimism.
• ROE of 10.13% and ROCE of 14.86% show positive capital returns, though under pressure.
• Market cap of ₹2 Cr versus latest quarterly sales of ₹7 Cr indicates an extremely cheap top-line valuation.

Concerns

• Sales declined 36.39% and profit fell 71.05%, while the latest quarter reported net profit of ₹0.
• Piotroski F-score of 3/9 indicates weak financial health and possible operational distress.
• The 52-week range of ₹14.05-₹249.65 is inconsistent with the current price of ₹4.42, raising data reliability and liquidity concerns.
• No dividend, no disclosed promoter holding, and no debt/equity data reduce transparency.

AI Analysis

At first glance, Surbhi Industrie looks like a Benjamin Graham net-net: price ₹4.42, book value ₹42.60, market cap just ₹2 crore, P/B 0.10. Even the P/E of 7.41 and ROCE of 14.86% suggest that on the numbers, the market has priced in agony. But value investing is not buying cheap statements; it is buying businesses that can generate cash. Here the business itself is shrinking: sales are down 36.39%, profit down 71.05%, and the latest quarter shows net profit of ₹0. The Piotroski F-score of 3/9 is a warning sign, not a beacon. I cannot ignore an inconsistent 52-week range of ₹14.05-₹249.65 when the current price is ₹4.42; that either tells me the data is unreliable or there is extreme illiquidity and perhaps a corporate action I do not fully understand. A ₹2 crore market cap is also far too small for any serious institutional investor, and promoter holding is not disclosed. No dividend means I am relying entirely on asset realisation or a future turnaround for returns. Graham would demand that I stress-test the stated book value: if receivables, inventory, and fixed assets are overstated, the 90% discount to book can vanish. ROE of 10.13% is decent, but with declining earnings and zero quarterly profit, that return is at risk. This is an asset play, not a great company at a fair price. I would not touch it without audited evidence of asset quality, a stabilising order book, and transparency on shareholding and debt. The margin of safety must be in the balance sheet and the cash flows, not just in the price.

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