Kkalpana Plastic (523652)

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

Key Financials

Strengths

• Book value per share is ₹11.34, providing some tangible asset support even though the stock trades at 2.5x book.
• Annual ROE and ROCE are still marginally positive at 0.51% and 1.44%, so the company is not deeply loss-making on a yearly basis.
• Market cap is only ₹16 Cr, so a genuine resumption of operations could have meaningful upside if a profitable niche is found.
• The current price of ₹28.32 is closer to the 52-week low of ₹22.61 than the high of ₹35.78, suggesting speculative enthusiasm has cooled.

Concerns

• Latest quarter sales and net profit are both ₹0 Cr, indicating operations appear stalled.
• Profit growth is -75% while the stock trades at a P/E of 522.67, a valuation completely disconnected from earnings power.
• Piotroski F-Score of 3/9 signals weak financial health and poor operational fundamentals.
• Dividend yield is 0.00%, so shareholders receive no income while waiting for a recovery that may never come.

AI Analysis

Let's start with what I care about: can this business generate returns on capital and grow intrinsic value? The numbers say no. Kkalpana Plastic trades at ₹28.32, but book value is only ₹11.34, so I'm being asked to pay 2.5 times book for a company earning a 0.51% ROE and 1.44% ROCE. In India, even a savings account earns more than that. The latest quarter shows sales of ₹0 and net profit of ₹0, and sales growth is 0% while profit is down 75%. This is not a temporarily out-of-favor compounder; it is a business without visible earnings power. A P/E of 522 on collapsing profits is not 'value' — it's hope wearing a disguise. The Piotroski F-Score of 3/9 tells me the financial health is weak. There is no dividend yield, so I am not getting paid to wait. Some might call the ₹16 Cr market cap a potential advantage, but small size cuts both ways; a small, unprofitable plastic products company with zero recent revenue can shrink to nothing. Graham taught me to buy with a margin of safety. At 2.5x book and essentially zero return on equity, the margin is on the other side — I would need a huge discount to book to even begin a conversation. If operations somehow restart and show real sales and margins, and the balance sheet is clean, I'd look again. But until then, this is exactly the kind of stock I pass on. In investing, sometimes the best move is inaction. The price may trade between ₹22.61 and ₹35.78, but without earnings, that range is just a roulette table, not an evaluation of worth.

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