Ansal Buildwell (523007)

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

Key Financials

Strengths

• Trades at a 20% discount to book value of ₹169.08, with P/B at 0.80.
• ROCE of 9.85% suggests some operating capital efficiency despite weak ROE.
• Modest dividend yield of 0.99% provides at least a token cash return to shareholders.
• Current price of ₹136 is above the 52-week low of ₹79, indicating the market has not entirely abandoned the stock.

Concerns

• Sales growth has collapsed by 80.58%, and latest quarterly sales were only ₹2 crore.
• Latest quarter net loss of ₹4 crore with profit growth of -1231.25% signals serious operating deterioration.
• Piotroski F-Score of 3/9 points to weak financial health and poor earnings quality.
• ROE of 2.58% is far too low to justify a real estate developer's capital base; book value may not be earning its keep.

AI Analysis

At ₹136, Ansal Buildwell trades at only 0.8 times book value of ₹169.08, so the market is already discounting trouble. Graham would remind me that a low price-to-book is not an invitation when the business cannot generate acceptable returns. Return on equity is just 2.58%, and while return on capital employed is 9.85%, the latest quarter shows sales of only ₹2 crore and a net loss of ₹4 crore. Sales have collapsed by 80.58% and profit growth is -1231.25%. A Piotroski F-Score of 3/9 reinforces my worry: profitability, leverage, and efficiency signals are weak. This is a real-estate developer, a cyclical business, and today it behaves like a potential asset play. The book value cushion exists only if the assets are honestly valued and eventually monetized. With a dividend yield of barely 0.99%, equity holders are receiving little while waiting. I would not be seduced by the cheap P/B or P/E of 10.93, because earnings are unreliable and the quarterly loss may be a sign of further writedowns. I need proof: sales stabilizing, projects completing, and cash flowing back to shareholders. If book value is real, this could be an asset play; if expenses and impairments continue, the book value will shrink. Margin of safety is essential. I would rather pass on this and miss upside than risk a value trap with a 20% discount to a deteriorating book value.

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