Goyal Associates (530663)

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

Key Financials

Strengths

• ROCE of 17.37% suggests historical capital efficiency, if the current collapse is temporary.
• Positive ROE of 6.89%, though modest, indicates the company is not yet destroying book value.
• Book value of ₹0.68 per share provides some tangible asset backing.
• The stock is at the top of its 52-week range (₹0.65–₹1.99), indicating renewed market interest.

Concerns

• Latest quarter shows ₹0 sales and ₹0 profit, meaning operations are effectively at a standstill.
• Sales down 68.54% and profit down 83.87% show severe deterioration, not a minor slowdown.
• Piotroski F-Score of 3/9 points to weak financial health and poor earnings quality.
• At ₹1.99 vs book value of ₹0.68, the stock trades at 2.93x book with no margin of safety.

AI Analysis

At first glance, this is exactly the kind of situation where I sit on my hands. Goyal Associates is a small NBFC with a market cap of just ₹9 Cr, trading at ₹1.99. The latest quarter shows zero sales and zero profit. Full-year sales are down 68.54% and profits are down 83.87%. That is not a growth story; that is a business shrinking in front of me. Book value is ₹0.68, so I am being asked to pay 2.93 times book for a company whose current earnings power appears to be nil. A P/E of 19.21 means little when the E is collapsing. ROE of 6.89% is mediocre; ROCE of 17.37% looks better but cannot be trusted when latest revenue and profit are zero. The Piotroski F-score of 3 out of 9 reinforces the picture of financial weakness. There is no dividend, no promoter holding data, and no FairStock score—too little transparency for a prudent investor. Graham taught me to buy with a margin of safety. Here, the margin is on the other side: I would be paying a premium to book value for a company with no visible operations. The stock has risen from ₹0.65 to ₹1.99, but price momentum is not investment evidence. I need to see actual sales, actual profit, and a credible path back to health before I risk capital. Until then, this belongs in the 'too hard' pile.

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