Tatia Global (521228)

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

Key Financials

Strengths

• Trailing P/E of 6.06 is low if reported earnings are genuine and sustainable.
• ROCE of 25.76% suggests efficient operating capital deployment at the EBIT level.
• Latest quarter reported a positive net profit of ₹6 Cr, indicating some ongoing activity.
• Stock is at the upper end of its 52-week range, showing short-term market acceptance.

Concerns

• Sales and profit both declined by roughly 27.7%, showing no growth or pricing power.
• ROE of 1.69% against P/B of 2.30 means investors pay over two times book for very low return on equity.
• Piotroski F-Score of 3/9 indicates weak financial health and poor fundamental signals.
• Data inconsistency: P/E 6.06 implies far higher EPS than book value and ROE would suggest; latest quarter's ₹6 Cr profit equals ₹6 Cr sales, raising earnings-quality red flags.

AI Analysis

At first glance, a P/E of 6.06 looks like the kind of bargain I search for. But Graham taught me that cheapness must be backed by dependable numbers, and here the numbers do not add up. Tatia Global is in residential and commercial real estate, an inherently cyclical business. Sales fell 27.69% and profit fell 27.70%; that kind of parallel decline tells me there is no pricing power or durable moat. A Piotroski score of 3/9 reinforces my discomfort—the balance-sheet and operating quality are weak. More troubling is the internal inconsistency. At ₹3.91 with book value ₹1.70, the stock trades at 2.3 times book. Yet ROE is only 1.69%, which implies a shareholder return of about 1.7 paise per rupee of book value. That would make the apparent P/E far higher than 6.06. The latest quarter reports sales of ₹6 Cr and net profit of ₹6 Cr—a 100% margin that is abnormal and demands scrutiny. One of these numbers must be misread, and when the figures do not reconcile, I treat the cheap valuation as a trap, not an opportunity. The high ROCE of 25.76% against a low ROE also hints at an interest burden or non-operating items, but without debt/equity or promoter holding details, my margin of safety is absent. There is no dividend yield to compensate. At ₹3.91, the stock sits at its 52-week high, so I would not be getting a bargain price. In Benjamin Graham's words, the market is a voting machine in the short run; with unreliable earnings and negative growth, I cannot make a rational investment. I would rather leave this ₹60 Cr micro-cap for speculators. If the company can stabilise sales, explain its profit margins, and improve its F-score, I might revisit it—but not today.

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