Sri KPR Inds. (514442)

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

Key Financials

Strengths

• Trading below book value: price ₹34.07 against book value ₹39.64, giving a P/B of 0.86.
• Headline P/E of 6.44 appears cheap, if the earnings figure can be trusted.
• Sales growth of 73.63% indicates the business is expanding its top line.
• Current market price at the top of the 52-week range suggests recent investor interest.

Concerns

• ROE of 0.78% and ROCE of 4.26% are extremely low, showing weak underlying economics.
• Profit growth of 0.00% despite 73.63% sales growth means expansion is not reaching the bottom line.
• Piotroski F-Score of 4/9 points to fragile financial health.
• No dividend, promoter holding not disclosed, and inconsistencies between P/E and ROE reduce confidence in the numbers.

AI Analysis

Let me start with a confession: I am not excited by a business earning just 0.78% on equity. Mr. Graham taught me to buy assets with a margin of safety, and at ₹34.07 against book value of ₹39.64, there is some asset cover. The P/B of 0.86 means I am paying 86 paise for a rupee of book value. But a cheap price cannot make a poor business good. ROCE of 4.26% is far below any acceptable cost of capital. And here I see a red flag: the quoted P/E is 6.44, yet with ROE of 0.78% and book value of ₹39.64, the implied earning power per share is only around 31 paise, which would suggest a P/E of roughly 110. One of these numbers cannot be right. As investors, we must demand trustworthy numbers, not just low multiples. Sales grew 73.63%, yet profit growth is 0.00%. That tells me the growth is not flowing to the shareholders; it may be coming from low-margin work, rising costs, or one-time effects. The latest quarter shows sales of ₹3 Cr and net profit of ₹2 Cr. That kind of margin is hard to sustain and conflicts with the flat annual profit picture. I would be very cautious. The Piotroski score of 4/9, no dividend, and no promoter holding details further dent my confidence. This is not a wonderful business at a fair price; it looks more like a possible asset play with a turnaround hope. I would only consider it as a small speculative position, not a core holding. I need to see several years of return on equity above 10%, consistent profit growth, and clean, reconcilable financials before I commit serious capital.

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