KS Smart Technlogies (516038)

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

Key Financials

Strengths

• Latest quarter revenue of ₹186 Cr and net profit of ₹17 Cr show the company can currently operate profitably at a reported scale.
• ROE of 71.71% points to strong reported return on equity, though it needs verification due to missing book value and debt data.
• Trading at ₹81.92, close to the 52-week low of ₹71.94, the stock has already fallen about 72% from its high of ₹290.95, so some bad news may be priced in.

Concerns

• Market cap of ₹11 Cr and P/E of 145.99 are inconsistent with quarterly sales of ₹186 Cr and net profit of ₹17 Cr; the fundamental data fails basic reconciliation.
• Piotroski F-Score of 2/9 indicates weak financial health and poor overall quality.
• ROCE is 0.00%, with zero sales growth, zero profit growth, zero dividend, and a very high P/E, leaving no obvious evidence of intrinsic value.
• The sharp decline from ₹290.95 to ₹81.92 could reflect operational deterioration, not a bargain.

AI Analysis

Let me begin with a basic rule: I can only value a business if the numbers hang together. Here they do not. The market capitalization is ₹11 Cr and the P/E is 145.99, which implies annual earnings of roughly ₹0.08 Cr. But the latest quarter shows sales of ₹186 Cr and net profit of ₹17 Cr. Those figures cannot both be true on the same share count. If the ₹17 Cr profit is real and recurring, the stock would be trading at a tiny fraction of earnings; if the P/E is real, then the quarterly profit is exceptional or misstated. As Graham would say, I would rather be approximately right than precisely wrong, but here I cannot even be approximately sure. The rest of the data does not reassure me. Sales growth and profit growth are both 0.00%. ROCE is 0.00%, meaning the business earns no return on the capital employed. The 71.71% ROE looks impressive, but with no book value and no debt-to-equity ratio, it may be a leverage illusion. The Piotroski F-Score of 2/9 says the financial health is weak. There is no dividend, no promoter holding disclosure, and no book value. The price has collapsed from ₹290.95 to ₹81.92, down more than 70%, yet the P/E is still 146. Paper is a cyclical commodity business, and this is a micro-cap with no visible moat. Buying a falling price without trustworthy assets and earnings is speculation, not investment. I would need audited annual reports, a clear share count, and proof that the latest quarter's profit is sustainable before I could even begin a serious valuation. At this stage, there is no margin of safety.

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