Khandelwal Extra (519064)

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

Key Financials

Strengths

• Book value per share of ₹34.26 gives a tangible, if modest, asset base against the ₹77.50 price.
• ROCE of 13.29% indicates some underlying capital efficiency, if the latest quarter's zero revenue is not the new normal.
• Market cap of only ₹7 Cr is small enough to attract a potential corporate acquirer or asset-sale catalyst.
• Share price ₹77.50 is down sharply from ₹199.50 high, reducing crowd enthusiasm and speculative froth.

Concerns

• Latest quarter sales and net profit are both ₹0; operating earnings power is currently absent.
• P/E of 90.25 with profit growth of -55.56% offers no valuation support.
• At 2.26 times book, the price is above book value, so the downside is not protected by assets.
• Piotroski F-Score of 3/9 and zero dividend signal poor financial health and no shareholder return.

AI Analysis

Reading Khandelwal Extra, I am reminded of Graham's rule: no amount of analytical sophistication can turn inadequate information into adequate conclusions. This is a ₹7 crore market cap company in other agricultural products, but the income statement is nearly dead. Sales have shrunk by 11.76% and profits have collapsed by 55.56%; the latest quarter shows zero sales and zero net profit. At ₹77.50, the P/E of 90.25 means the market is paying an extraordinary multiple for earnings that are disappearing. Meanwhile the balance sheet gives some anchor — book value ₹34.26 per share — but at 2.26 times book, I am paying a premium for assets, not buying them at a discount. Return on equity of only 3.67% tells me the equity is earning very little. ROCE of 13.29% is the one encouraging number, but with a zero-revenue quarter and no debt/equity data, I cannot build a thesis on that. The Piotroski score of 3 out of 9 reinforces my caution. There is no dividend to compensate while I wait, and promoter holding is undisclosed. The share price is closer to its 52-week low of ₹67 than its high of ₹199, but a falling price is not automatically value. In Graham's terms, the stock fails both the earnings test and the balance-sheet margin-of-safety test. If there are hidden agricultural land or inventories, I would need audited details and a price lower than net current asset value. Without those, this is a speculative special situation, not an investment. I would put it in the 'too hard' pile — or, at best, an asset play to be revisited only if the operations restart and management shows capital discipline.

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