Patidar Buildcon (524031)

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

Key Financials

Strengths

• Price of ₹11.15 is below stated book value of ₹12.41, offering a P/B of 0.90.
• The company is an asset-heavy real estate entity; if land/project assets are real, there is support from book value.
• Latest quarter net loss is only ₹-0 Cr, so immediate cash destruction is not severe.
• Small market cap of ₹6 Cr could attract a takeover/control investor if assets can be unlocked.

Concerns

• Sales growth has collapsed by -90.38% and latest quarterly sales are ₹0 Cr; the operating business has effectively stopped.
• ROE at -3.88% and ROCE at -2.10% mean the asset base is not earning an economic return.
• Piotroski F-Score of 2/9 indicates weak financial health and potential distress.
• Debt/Equity and promoter holding are not available, making it impossible to assess leverage and insider alignment.

AI Analysis

At ₹11.15, Patidar Buildcon sells at a price-to-book ratio of 0.90, against a stated book value of ₹12.41. In Graham’s language, that is a small margin of safety. But a low price-to-book is only the starting point, never the whole thesis. The business is not earning anything: sales have collapsed by 90.38%, and the latest quarter shows revenue of ₹0 Cr. Net profit is also ₹-0 Cr, which means there are no profits to capitalise; the P/E of 0.00 is not cheapness, it is an absence of earnings. ROE is -3.88% and ROCE is -2.10%, so the assets are not working for shareholders. Book value is slowly being eroded, not compounded. The Piotroski F-score of 2/9 warns of poor financial health. This looks like a classic asset play, but only if the assets are real and can be realised. In residential and commercial projects, stated book value often sits in land, inventory, or work in progress; those figures can be very different from forced-sale value. I also do not have debt/equity or promoter holding data, so I cannot assess leverage or whether the promoter is aligned with minority shareholders. A market cap of ₹6 crore makes this a micro-cap with poor liquidity, unsuitable for serious investment. Ben Graham said: buy when the discount gives you not just a good price, but a margin of safety. A 10% discount to book with no revenue, negative returns, and a 2/9 Piotroski score is not enough safety. This is an asset play, not a quality compounder. I would need a much larger discount, evidence of asset quality, and management transparency before considering it. Until then, it belongs in the 'too hard' pile.

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