Balurghat Tech (520127)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I start with the figures, not the story. Balurghat Tech trades at ₹26.48 with a market cap of ₹49 Cr, yet the P/E is 0 because earnings are negative. That removes the foundation of my analysis: a business that cannot earn money for shareholders has no meaningful earnings-based valuation. At ₹9.79 book value, the stock sells at 2.7 times book. That is no margin of safety for a company losing money. Return on equity is -21.17%, deeply value destructive. The latest quarter shows ₹28 Cr of sales but a ₹3 Cr net loss; annual profit growth is down 823.26%. Sales growth of 20.04% does not excite me if each additional rupee of revenue produces losses. ROCE of 12.99% is positive, but with ROE deeply negative, I suspect leverage or non-operating distortions; debt-to-equity is N/A, and promoter holding is N/A, so I cannot judge governance or financial risk. The Piotroski F-score of 4/9 tells me the balance sheet and operations are weak, not the profile of a high-quality compounder. Dividend yield is zero. The price sits at the top of its 52-week range of ₹9.07 to ₹26.48, which looks like speculative enthusiasm, not value. This looks like a cyclical road-transport business in a rough patch. A true investor needs a strong balance sheet, consistent profitability, and a clear path to better returns on capital. I see none of those with certainty. I will wait until the numbers prove a turnaround before I commit capital.

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