Adarsh Plant (526711)

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

Key Financials

Strengths

• Latest quarter net profit of -₹0 Cr suggests losses may be stabilizing near breakeven.
• Positive book value of ₹1.56 provides a small equity cushion above insolvency.
• Operates in pesticides and agrochemicals, an essential agriculture-linked sector.
• Trading above the 52-week low of ₹23.21 indicates some market interest and liquidity.
• Small market cap of ₹35 Cr could allow outsized returns if a genuine recovery materializes.

Concerns

• Price-to-book of 22.11 is extreme when ROE is -85.17% and ROCE is -17.41%.
• Sales growth of -33.07% and profit growth of -600% reflect a shrinking, loss-making business.
• Piotroski F-Score of 2/9 signals weak financial health and potential operational distress.
• Promoter holding and debt/equity data are unavailable, reducing transparency for minority investors.

AI Analysis

At ₹34.49, Adarsh Plant has a market cap of ₹35 Cr, but its book value is just ₹1.56 per share. That means I am paying 22 times stated net worth for a company that earned an ROE of -85% and an ROCE of -17%. There is no margin of safety. Graham would ask what earnings can support this price, and the answer is nothing: the latest quarter shows sales of only ₹3 Cr and net profit of -₹0 Cr, essentially breakeven, while the broader picture shows sales down 33% and reported profit growth at -600%. A Piotroski F-Score of 2 out of 9 reinforces that this business is deteriorating, not improving. Dividend yield is zero, so I receive no income while waiting. The 52-week range of ₹23.21 to ₹44.90 tells me the market has been volatile, but volatility is not the same as value. In the pesticides and agrochemicals industry, quality companies can have pricing power and steady demand, but these numbers do not display any such characteristics. I cannot calculate a reliable intrinsic value when earnings are absent, returns on capital are deeply negative, and key data such as promoter holding and debt-to-equity are not available. The FairStock score is also insufficient, which forces me to rely only on a weak price and negative fundamentals. My discipline is simple: avoid businesses where the balance sheet is thin, the operations destroy capital, and the price is far above any reasonable estimate of worth. At ₹34.49, Adarsh Plant fails every test I apply. I will not invest today. I will watch only if the company demonstrates a clear, sustained turnaround through real profits and positive cash flow, not just a round of zeros in one quarter.

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