Bansisons Tea (519353)

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

Key Financials

Strengths

• Price of ₹4.18 is 55% below book value of ₹9.38, giving a P/B of 0.45 and a statistical margin of safety.
• Market cap is only ₹3 crore, so even a small asset sale, merger, or restructuring could create outsized per-share value.
• Latest quarter net loss is negligible at -₹0 crore, suggesting minimal cash burn while the business remains dormant.

Concerns

• Latest quarter sales are ₹0 crore and net profit is -₹0 crore, indicating the company is effectively non-operating.
• ROE of -1.17% and ROCE of -1.01% show that existing capital is being eroded, not compounded.
• Piotroski F-Score of 2/9 points to weak fundamentals and poor financial health.
• Current price of ₹4.18 is below the 52-week low of ₹5.60, reflecting negative momentum and likely illiquidity.

AI Analysis

At ₹4.18, Bansisons Tea has a market cap of just ₹3 crore. A Graham screen would immediately notice the balance sheet: book value of ₹9.38, so the shares sell at 0.45 times book. That looks like a classic asset play. But I always remind myself: an asset is only as good as the earnings it can produce. Here, the latest quarter shows sales of ₹0 crore and a net profit of -₹0 crore. The company is not operating meaningfully. Return on equity is -1.17% and ROCE is -1.01%. When capital earns a negative return, book value slowly leaks away. The Piotroski F-Score is 2 out of 9, which is a red flag for financial health. There is no dividend, no sales growth, and no profit growth. The 52-week range is ₹5.60 to ₹16.55, and the current price has fallen below that range — the market is saying this is deteriorating, not turning around. A P/E of zero is useless because earnings are absent. I cannot value this on earnings power. What I can say: if the assets are real and not impaired, there is a statistical margin of safety. But a discount to book value can remain for years, and a sub-₹3 crore market cap means poor liquidity and negligible institutional coverage. In the fragmented Indian tea industry, small players lack pricing power. This is not a compounding business and it has no moat. In Buffett's language, it is a cigar-butt — maybe one puff left if management or a corporate action unlocks value. But without evidence of a catalyst, promoter intent, or fresh operating plan, the negative return on assets makes me cautious. I would only consider this as a speculative small allocation, and I would demand a much deeper discount or visible asset realization plan before acting.

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