Haryana Leather (524080)

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

Key Financials

Strengths

• P/B of 1.10 and book value ₹93.64 versus market price ₹102.65 means investors are paying close to asset backing.
• P/E of 14.80 is modest for a microcap; no excessive multiple is being paid.
• ROCE of 8.02% is meaningfully above ROE of 4.43%, suggesting operational returns are not completely absent and leverage is not visibly straining the business.
• Dividend yield of 1.62% gives some cash return while waiting.

Concerns

• ROE of only 4.43% indicates weak shareholder value creation and subpar capital efficiency.
• Topline and bottom line are declining at ~6.5%, and latest quarterly net margin is thin at about 8.3% (₹1 Cr on ₹12 Cr).
• Piotroski F-Score of 3/9 points to poor financial health and deteriorating fundamentals.
• Promoter holding and debt details are N/A, creating an information gap for assessing governance and balance sheet risk.

AI Analysis

Let me first ask whether I understand this business. Haryana Leather is in commodity chemicals, and that immediately tells me pricing power will be hard to find. At ₹102.65, the market cap is ₹50 crore and book value is ₹93.64, so I am paying barely above net assets. In Graham's language, that is a starting point, not an ending. The assets must earn a respectable return; here they do not. ROE is only 4.43%, and ROCE is 8.02%. For a small commodity company, I want double-digit returns, not numbers like these. The latest quarter shows sales of ₹12 crore and net profit of ₹1 crore, a thin margin. Sales and profit are both down about 6.5%, so the business is heading in the wrong direction. The Piotroski score of 3/9 is a red flag: it signals weak operating health and poor momentum. Yes, the company pays a 1.62% dividend, and a P/E of 14.8 is not outrageous, but a low price can become a trap when earnings keep slipping. There is no durable moat here; a commodity chemical firm must continually prove itself through costs and execution. I also cannot see promoter holding or debt data, which makes it harder to judge management and financial risk. This looks like a cyclical commodity business sitting near book value with weak returns and negative growth. I do not see a margin of safety sufficient for me to commit capital. I would need evidence of stable margins, improving returns, and honest stewardship before calling it an attractive investment.

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