Madhusudan Inds. (515059)

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

Key Financials

Strengths

• Trades below book value: price ₹58.65 vs book value ₹63.30, P/B 0.93
• Sales growth positive at 6.25%, showing topline momentum
• ROCE positive at 4.10%, suggesting some operational return on capital
• Low market cap of ₹32 Cr leaves room for a potential niche turnaround

Concerns

• Latest quarter has zero sales and a ₹1 Cr net loss
• ROE deeply negative at -5.81% and profit growth down 17.14%
• Piotroski F-score only 4/9, indicating weak financial health
• No dividend, and promoter holding and debt/equity are undisclosed

AI Analysis

Looking at Madhusudan Inds., I am reminded of Graham's dictum: price is what you pay, value is what you get. At ₹58.65, the market caps this edible oil player at just ₹32 Cr, while book value stands at ₹63.30 per share. That is a price-to-book of 0.93 — a rupee of net assets available for 93 paise. But a bargain is only a bargain if those assets eventually earn a decent return. Right now, the business is not covering its cost of equity: ROE is -5.81%, and profit growth has fallen 17.14%. The latest quarter shows ₹0 Cr sales and a ₹1 Cr net loss — that is a red flag for any capital allocator. Sales growth of 6.25% does show some topline life, and ROCE of 4.10% is positive, but that is far below what I would demand from an edible oil business with little pricing power. The Piotroski F-score of 4/9 also tells me the financial position is weak, not strong. There is no dividend to reward a patient shareholder, and promoter holding is not disclosed, which prevents full trust. I also do not know the debt/equity, so I cannot judge the true leverage risk. At this price, I would call it an asset play, not a compounding machine. If management can turn the latest quarter around and generate consistent earnings on that ₹63.30 book value, the stock could re-rate. But until I see real sales and profits, assets are only worth what the market will pay. I would keep this on my watch list rather than buy.

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