Maxgrow India (521167)

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

Key Financials

Strengths

• Price of ₹1.22 is an 80% discount to book value of ₹6.06, offering a potential deep-value margin of safety if book value is credible.
• Quoted P/E of 1.13 and reported profit growth of 1,000% suggest a possible sharp earnings inflection, with latest quarter net profit at ₹95 Cr.
• Piotroski F-Score of 5/9 indicates some improvement or stability, not a completely failed balance sheet.
• Small market cap of ₹5 Cr may keep the stock neglected, leaving room for inefficiency if fundamentals improve.

Concerns

• ROE of -112.92% and ROCE of 0.00% show the company was destroying shareholder capital, not earning an acceptable return.
• Data inconsistencies are severe: current price ₹1.22 is below the stated 52-week range of ₹10.52-₹73.36, and reported quarterly profit of ₹95 Cr cannot reconcile with a ₹5 Cr market cap and P/E of 1.13.
• Sales growth is 0.00%, so the profit spike may be one-time or non-operating, not evidence of a durable business.
• No dividend yield and promoter holding N/A mean shareholders get no cash return and ownership transparency is poor.

AI Analysis

Let me start with what I can trust: at ₹1.22, Maxgrow India is quoted at one-fifth of its book value of ₹6.06. On the surface, that is a classic Graham asset play—buy a rupee of assets for twenty paise. But a bargain is only a bargain if the assets are real and earning power is intact. Here, the earning power is not intact. Reported return on equity is -112.92% and ROCE is 0.00%. The company was, until recently, destroying equity, not compounding it. A Piotroski score of 5 out of 9 is mediocre; F-Score of 5 suggests some signs but not enough. Then the data become bizarre. The latest quarter shows sales of ₹5,305 crore and net profit of ₹95 crore, yet market capitalization is ₹5 crore and P/E is 1.13. Those numbers cannot coexist under normal accounting unless the quarter is non-recurring, there has been a huge one-off gain, or the data are wrong. Similarly, the 52-week range of ₹10.52-₹73.36 sits entirely above the current price of ₹1.22—something is off. Benjamin Graham insisted on reliable figures; I cannot build a margin of safety on contradictions. Profit growth of 1,000% sounds exciting, but with sales growth of 0.00% and negative ROE, it is likely coming from a low base or extraordinary items, not a durable business franchise. The gems and jewellery industry is cyclical and highly competitive; I see no economic moat. Dividend yield is zero, promoter holding is not disclosed, and debt/equity is unavailable. At this price, the stock may look like a turnaround or asset play. But if I buy an asset that keeps losing money, the book value will soon be lower. I would wait for credible audited financials, positive and sustainable ROE, visible sales growth, and promoter skin in the game. Cheap can always get cheaper; capital preservation comes first.

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