Hariyana Ship (526931)

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

Key Financials

Strengths

• Trading at ₹176.15 against book value of ₹261.67, a P/B of 0.67 offers asset-based downside cushion
• Low P/E of 6.64 suggests the market is pricing in modest earnings power
• Piotroski F-Score of 6 indicates reasonable financial health
• Latest quarter reported a net profit of ₹7 Cr, showing positive bottom-line performance

Concerns

• Sales growth is 0% and latest quarterly sales of ₹2 Cr are far below the ₹7 Cr net profit, raising sustainability doubts
• ROCE of 3.20% and ROE of 7.00% show weak capital productivity
• No dividend means investors depend entirely on capital gains
• Debt/Equity and promoter holding are not disclosed, leaving critical governance and leverage risks unknown

AI Analysis

At ₹176, Hariyana Ship offers me roughly ₹261 of book value for every share—67 paise for a rupee of assets. That is precisely the sort of margin of safety Graham taught. But cheap is not enough. This shipbuilding business earns only 7% on equity and 3.2% on capital employed, so its assets are not being converted into attractive returns. Sales growth is zero, and although reported profit is up 1000%, I am not convinced. The latest quarter shows sales of just ₹2 Cr against net profit of ₹7 Cr; that does not look like durable operating earnings. It smells of an extraordinary item or a very low base. A P/E of 6.64 is optically cheap, but quality matters more than the multiple. I cannot judge the balance sheet without debt-equity data, and I do not know promoter holding—both are critical in a small-cap, capital-hungry industry. Shipbuilding is cyclical and offers little pricing power. A low price-to-book can sometimes be a value trap if the book value is stale or returns stay weak. The stock sits at its 52-week high, so Mr Market is bidding it up; I need proof that profits are repeatable. The Piotroski F-Score of 6 is passable, but there is no dividend, so my only return would come from price appreciation or value unlocking. This is an asset play: buy below book, hope for better management of capital, and wait. I would not call it a growing franchise. I would need order book visibility, operating cash flow details, and promoter commitment before treating this as a core holding. Until then, it is a small, speculative position at best—one where the margin of safety is tangible but the quality of earnings is unproven.

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