Source Industrie (521036)

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

Key Financials

Strengths

• Trades at ₹2.62 versus book value ₹3.74, giving a P/B of 0.70 and a possible asset-backed margin of safety.
• Piotroski F-Score of 7/9 suggests the financial position is not deteriorating sharply based on available data.
• Tiny ₹3 crore market cap leaves scope for asset monetisation or corporate action to change per-share value.
• Zero growth means the market is not paying for an expansion story; the asset discount is the primary hook.

Concerns

• Latest quarter shows sales of ₹0 and net profit of ₹0, implying there may be no active operating business.
• ROE of 3.10% and ROCE of 0.22% reflect very poor returns on capital and idle assets.
• P/E of 44.31 is unjustifiable with zero earnings growth, and the 0% dividend yield gives shareholders no cash return.
• Promoter holding is N/A and the current price is below the stated 52-week low, raising transparency and liquidity red flags.

AI Analysis

At ₹2.62, Source Industrie is a ₹3 crore microcap, and my first instinct is caution. A business with latest quarterly sales of ₹0 and net profit of ₹0 is not an operating company; it is a corporate shell carrying assets. Book value stands at ₹3.74, so the market price is just 0.7 times book. Graham would call that asset value possible support, but only after checking whether the assets are real, earning power can be restored, and management acts for shareholders. On that front, the numbers are not encouraging. Return on equity is only 3.10% and ROCE is 0.22%; the assets are largely idle. With sales growth and profit growth both zero, there is no earnings engine to drive compounding. The P/E of 44.31 is meaningless when earnings are close to nothing; as Benjamin Graham said, price is what you pay, value is what you get. Here you are paying for a balance sheet, not a business. The Piotroski F-score of 7/9 is a small positive, suggesting the financial position hasn't collapsed, and the PEG of 0.22 is irrelevant without growth. The absence of dividend income, promoter holding data, and a price below the stated 52-week range are all red flags for a retail investor. This is not a stalwart or a growth story. It is an asset play — a bet that the book value of ₹3.74 can be unlocked through asset sales, merger, or fresh business. The margin of safety is real only if those assets are worth their stated value and the controlling shareholders are trustworthy. I would not consider this a sound investment until there are signs of revenue, better capital allocation, and clearer governance.

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