Ludlow Jute (526179)

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

Key Financials

Strengths

• Trades at ₹81.07 against book value of ₹133.49, giving a P/B of 0.61 and a balance-sheet cushion.
• Low trailing P/E of 12.38 and PEG of 0.06 despite sharp reported growth.
• Sales growth of 158.82% and profit growth of 231.92% indicate improving operating momentum, albeit from a low base.
• Piotroski F-Score of 6/9 suggests some improvement in financial health.

Concerns

• ROCE is negative at -0.56%, meaning the business is not earning a satisfactory return on invested capital.
• Latest quarter net profit of ₹3 Cr on sales of ₹136 Cr implies a thin ~2.2% net margin.
• No dividend is paid, so patient shareholders get no current income.
• Current price is below the stated 52-week range of ₹162-₹479, and promoter holding is not available, adding uncertainty.

AI Analysis

At ₹81.07, Ludlow Jute is selling at 0.61 times book value of ₹133.49, giving me a classic Graham-style margin of safety on the balance sheet. The P/E is 12.38 and reported profit growth is 231.92%, with sales growth of 158.82%. But I must be sceptical: huge percentage growth usually means a tiny base. The latest quarter shows sales of ₹136 Cr but net profit of only ₹3 Cr, a margin under 2.2%. ROCE is -0.56%, which tells me the underlying business is not yet earning a satisfactory return on capital. ROE at 11.11% is acceptable but not outstanding. The Piotroski F-Score of 6/9 suggests some balance-sheet and operational improvement, but this is still a commodity jute manufacturer, not a franchise with pricing power. There is no dividend, so the investor is entirely dependent on asset realisation or earnings recovery. The 52-week range of ₹162-₹479 versus the current price of ₹81.07 is alarming and tells me the market has lost confidence; I need to know why. Promoter holding is not available, which is a red flag for governance and skin-in-the-game. I would not call this a fast grower despite the PEG of 0.06, because growth quality is questionable. Rather, I see a potential asset play: the stock is below book value with a low P/E, but the negative ROCE means the jute assets may not be earning their keep. For a Graham investor, a discount to book is only a starting point; you must ask whether the assets are productive and whether management can improve returns. If not, value can remain cheap for years. I would keep it on my watchlist, not in my portfolio.

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