Jattashankar Ind (514318)

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

Key Financials

Strengths

• Trades below book value with P/B of 0.87; book value is ₹43.56 against price ₹38, offering some asset-based margin of safety if assets are genuine.
• Latest quarter sales of ₹56 Cr are substantial relative to the ₹17 Cr market cap, indicating an existing revenue base.
• Piotroski F-score of 6/9 is moderate and suggests recent operational/financial improvements versus very weak fundamentals.
• Profit growth of 381.82%, though off a tiny base, at least shows some directionally positive movement.

Concerns

• P/E of 1000 and latest quarterly net profit of ₹0 Cr mean the stock is not cheap on earnings; profit generation is virtually nil.
• ROCE is -6.93% and ROE is 0.75%, indicating the company is destroying capital on its existing asset base rather than compounding it.
• Current price ₹38 is far below the 52-week range of ₹201.20 to ₹454.10, raising questions about data accuracy, corporate action, or severe business deterioration.
• Promoter holding is not available, dividend yield is zero, and the reported sales growth of 279,600% is likely a low-base distortion, not a quality growth signal.

AI Analysis

Let me start with what I see: Jattashankar Ind is a tiny textile enterprise, market cap ₹17 Cr, selling at ₹38 against book value ₹43.56. That sounds like an asset play, but I must not let the cheap P/B blind me. The company earns almost nothing — ROE is 0.75%, ROCE is -6.93%, and latest quarterly net profit is ₹0 Cr. A P/E of 1000 reinforces the truth: on earnings, it is not cheap at all. Sales growth of 279,600% and profit growth of 381.82% may look spectacular, but from a negligible base they are statistical illusions, not evidence of a durable franchise. In a commodity-like textile industry, I see no moat, no pricing power, no competitive advantage. The Piotroski F-score of 6/9 is modestly encouraging, but that is a crude snapshot, not a reason to invest. Debt-to-equity is not disclosed, which troubles me further: if I cannot see the capital structure, I cannot judge financial health properly. The 52-week range of ₹201.20 to ₹454.10 against today's ₹38 is a glaring red flag — either the data is inconsistent, there has been a corporate action, or something drastic happened. I need an explanation before anything else. I would not buy this merely because it trades below book. Benjamin Graham wanted a margin of safety, but also capable management and a decent return on capital. Here, capital employed earns negative returns. This could be a value trap dressed as an asset play. If the underlying assets are real and monetizable, it could become interesting, but only at a large discount with proper controls. For now, I watch from the sidelines.

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