Square Four Pro. (526532)

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

Key Financials

Strengths

• Positive ROE of 1.33% and reported profit growth of 14.29% show marginal profitability and improvement from a low base.
• Book value of ₹3.24 per share provides some tangible asset reference beneath the price.
• Piotroski F-Score of 5/9, while moderate, indicates not all fundamental signals are weak.
• Current price is below the top of its 52-week range (₹6.60–₹10.97), so it is not chasing a runaway high.

Concerns

• Latest quarter has zero sales and zero/negative net profit; there is no earning power.
• P/B of 2.64 means investors pay a substantial premium to book value for a business with negligible returns.
• ROCE is negative (-0.04%) and ROE is only 1.33%, far below any acceptable return on equity.
• No dividend, no promoter-holding data, and no debt-equity disclosure limit confidence and margin of safety.

AI Analysis

Let me begin with Graham's first test: can the business produce earnings? Square Four Pro fails that on day one. The latest quarter shows sales of ₹0 Cr and a net profit of ₹-0 Cr, so I cannot project any honest stream of future cash flow. Even for a commodity-chemicals company, zero sales is not a temporary down-cycle; it is the absence of a going operation. The reported ROE of 1.33% and negative ROCE of -0.04% confirm that the company earns almost nothing on equity and loses money on capital employed. A profit-growth figure of 14.29% looks nice but is meaningless from such a tiny base. At ₹8.54, the market cap is ₹17 Cr, which is 2.64 times book value of ₹3.24 per share. Paying a premium to book is only sensible if the business earns above-average returns; this one earns nothing close. There is no dividend yield, so I receive no cash while I wait. The Piotroski score of 5/9 is mediocre, not a signal of strength. I also have no promoter holding data and no debt-equity figure, so I cannot judge whether insiders are committed or how much leverage exists. This is not a company I can value; it is a ₹17 Cr speculation on a future turnaround. Benjamin Graham said the margin of safety is the central concept of investment. Here the margin is absent: price is above book, earnings are negligible, and revenue is nil. The prudent course is to leave Square Four Pro alone until the company proves it can generate real sales and returns.

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