Epsom Properties (531155)

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

Key Financials

Strengths

• Reported ROE of 22.80% is positive, though it needs to be reconciled with zero sales.
• A small market cap of Rs 6 crore means a single asset sale or project development could be material to the share price.
• The current price of Rs 7.50 is not near the 52-week low of Rs 5.41, indicating some recent buyer interest.
• As a listed real estate entity, there is an underlying legal and disclosure framework that could facilitate a future restructuring.

Concerns

• Latest quarter sales are Rs 0 crore and net profit is Rs -0 crore, so there is no operational revenue generation.
• ROCE of -270.59% indicates severe capital destruction, and a Piotroski F-Score of 2/9 points to poor financial health.
• Book value, P/B, debt/equity and promoter holding are all N/A, making any margin-of-safety calculation impossible.
• Dividend yield is 0%, sales growth is 0% and profit growth is 0%, providing no shareholder return or visible growth engine.

AI Analysis

Let me start with what attracts me: I like to own businesses where the numbers tell a clear story. Epsom Properties tells me almost nothing, and that is a warning. The shares trade at Rs 7.50, giving a market cap of only Rs 6 crore. But the latest quarter shows sales of zero and a net loss of roughly Rs 0 crore. There is no operating engine. A property company with no current revenue cannot be valued on earnings; the P/E of 0.00 is meaningless. Book value is not available, so I cannot check Graham's first requirement of a margin of safety. The 22.80% ROE looks acceptable on the surface, but with zero sales, any positive ROE is suspect. ROCE of -270.59% is a red flag: the capital employed is earning a huge negative return. The Piotroski F-Score of 2 out of 9 confirms severe financial stress. Sales growth and profit growth are zero percent; dividend yield is zero. I also cannot see promoter holding, so I do not know whether insiders own a meaningful stake. In Graham's world, you are not buying a ticker symbol; you are buying part of an enterprise that must generate a return. Here, the absence of revenue and book value and the negative ROCE mean I cannot calculate intrinsic value, and I will not compensate with hope. A tiny Rs 6 crore market cap and a 52-week range between Rs 5.41 and Rs 10.39 make this a low-priced speculative security, not a measurable investment. It might own land or a project that changes the story someday, but 'might' is not an investment thesis. I would wait until management publishes audited book value, asset schedules, and a credible plan to monetise the property. Until then, I would rather miss this than lose money. As Buffett said, 'You don't need to do a lot of things; just avoid a few big mistakes.' This feels like one I should avoid.

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