Lords Ishwar (530065)

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

Key Financials

Strengths

• Piotroski F-Score 6/9 suggests the company is not in acute financial distress.
• Recent trailing profit growth of 300% shows earnings rebounded from a low base.
• ROCE of 6.96% is higher than ROE of 4.10%, indicating some operating return before financing and tax effects.
• A tiny ₹13 Cr market cap means even a small absolute profit improvement could move the share price sharply.

Concerns

• Sales are shrinking (-6.93%) and the latest quarter's net profit is ₹0 Cr, so the 300% annual growth is not yet convincing.
• At a P/E of 47.04 and P/B of 2.35, the price already assumes a strong recovery despite a 4.10% ROE.
• No dividend, with promoter holding and debt/equity data unavailable, leaves serious transparency and governance gaps for a retail investor.
• The PEG of 0.16 is misleading because the growth rate is from a very low earnings base.

AI Analysis

At the outset, Lords Ishwar fails my first test: is this a wonderful business? The ROE is only 4.10%, and ROCE is 6.96%. A hotelier in this competitive business must generate high returns on tangible capital; instead, these figures resemble a fixed deposit, but with occupancy risk and an illiquid micro-cap share price. The market cap is just ₹13 Cr at ₹17.15 per share, which is 2.35 times book value of ₹7.31. Graham taught me to buy assets at a discount, not at premiums, unless the business has proven earning power. The earning power here is thin. The latest quarter shows sales of ₹2 Cr and net profit of ₹0 Cr. Annual profit growth of 300% may tempt a speculator, but sales have fallen by 6.93%, so the growth is from a low base and is not backed by a healthy expanding topline. The Piotroski F-Score of 6/9 keeps the story from being an obvious financial wreck, but that is not the same as a moat. With no dividend, no promoter-holding disclosure, and no debt/equity information, I cannot perform a complete safety analysis. The PEG of 0.16 is arithmetic, not judgment; it relies on a flattering 300% growth denominator. At 47 times earnings for a shrinking topline, I would have to assume a permanent, exponential recovery. The hotel industry is cyclical. Patience is important, but paying up for hope is not value investing. I would put this in my 'too hard' pile unless it falls to a meaningful discount to book, or unless several quarters of real positive earnings validate a genuine turnaround.

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