Eureka Industrie (521137)

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

Key Financials

Strengths

• Latest quarter sales of ₹34 Cr against a ₹3 Cr market cap gives a large top line if margins can recover
• Trailing P/E of 4.10 indicates some positive earnings power despite balance sheet stress
• Price of ₹3.59 is close to the 52-week low of ₹3.41, so expectations are already very low
• Tiny market cap and steep fall from ₹13.20 could create a high-upside special situation if a credible turnaround emerges

Concerns

• Negative or impaired book value implied by N/A P/B and ROE of -42.27% is a serious balance sheet red flag
• Piotroski F-score of 2/9 and ROCE of 0.00% reflect weak operational and financial health
• Sales down 5.04%, profit down 54.43%, and latest quarter net profit of ₹0 Cr leaves no earnings cushion
• No dividend and no promoter holding data provide no evidence of shareholder alignment or insider confidence

AI Analysis

Let me begin with what the numbers actually say. Eureka Industrie trades at ₹3.59, giving it a market capitalisation of only ₹3 crore. The 52-week range of ₹3.41 to ₹13.20 tells me this stock has collapsed and is now sitting just above its low. The P/E of 4.10 looks cheap, but Graham warned me never to judge a business by P/E alone. There is no book value, no P/B, and ROE is -42.27%. That combination implies shareholder equity has been impaired, possibly negative, and that is a serious red flag. ROCE is 0.00%, so the company is generating no meaningful return on its capital. The Piotroski score of 2/9 confirms a fragile financial position. The growth picture is equally weak. Sales fell 5.04%, profit fell 54.43%, and the latest quarter shows net profit of ₹0 crore. The latest quarterly sales of ₹34 crore compared to a ₹3 crore market cap seems striking, but revenue is worthless if it cannot be converted into durable earnings. There is no dividend, and promoter holding is not available, so I cannot judge whether insiders are aligned with minority shareholders. In the 'Other Textile Products' space, I see no proprietary moat, no pricing power, and no reason to expect a sustainable competitive advantage. Would I call this an investment? Not yet. It could be a turnaround or special situation if management repairs the balance sheet and produces consistent positive earnings. But with an F-score of 2/9, no visible capital returns, and negative equity, I have no evidence of that. The share price has already fallen from ₹13.20, so much bad news may be priced in, but a low price is not the same as intrinsic value. In Buffett's words, I would put this in the 'too hard' pile until real proof of recovery appears.

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