Sh. Karthik Pap. (516106)

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

Key Financials

Strengths

• Latest quarter revenue of ₹14 Cr shows the company still has an operating sales base.
• Sales growth of 2.92% is positive, though modest.
• ROCE of 3.65% is positive, suggesting operations are not completely value-destructive before financial costs.
• Book value per share of ₹1.66 provides a tangible asset reference point, even though price is far above it.

Concerns

• P/E of 0.00 with latest quarter net profit of ₹-0 Cr means there is no current earnings power to validate the price.
• ROE of -10.82% means shareholder capital is being eroded; paying P/B of 6.09 is very dangerous with such returns.
• Piotroski F-Score of 4/9 indicates weak fundamental health across profitability, leverage, and efficiency.
• No dividend yield and no promoter holding disclosure reduce confidence for a ₹20 Cr microcap.

AI Analysis

Looking at Sh. Karthik Pap, I see a business that fails my first test: it does not generate dependable earnings. The P/E is effectively zero because there is no profit to speak of, and the latest quarter shows net profit of ₹-0 Cr on sales of ₹14 Cr. That is not an earnings machine; that is a cyclical paper business struggling to stay above water. Sales growth of 2.92% is meagre and certainly not evidence of pricing power or a moat. A moat should show up in returns on capital; here ROE is -10.82% and ROCE is only 3.65%. For a microcap priced at ₹10.11, the market cap is ₹20 Cr, yet book value is just ₹1.66 per share. I am being asked to pay 6.09 times net assets for a business that earns negative returns on those assets. Graham would insist on a margin of safety; with P/B over 6 and no dividend yield, there is no margin of safety. The Piotroski F-score of 4/9 reinforces my caution. Promoter holding is not even available, so I cannot judge management alignment. The fact the stock trades near its 52-week high of ₹10.65 seems speculative, not fundamental. In a commodity paper business, I would consider buying at times of depressed earnings if the balance sheet were strong and the price low. That is not this case. This is a cyclical commodity business, and without earnings, a reasonable valuation is impossible. I will stay away until there is evidence of sustained profitability and better disclosure.

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