Equilateral Ent. (531262)

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

Key Financials

Strengths

• Sales growth of 31.90% shows top-line momentum; latest quarter revenue is ₹10 Cr.
• Book value per share of ₹9.14 provides some asset backing; P/B is only 1.53.
• Despite a profit collapse, the trailing P/E of 67.38 implies the company is still nominally profitable, not loss-making.
• Small market cap of ₹28 Cr leaves room for a scalable recovery if margins normalize.

Concerns

• Profit growth collapsed by 80%; latest quarter net profit is effectively ₹0 Cr, so margins are under severe pressure.
• ROE of 3.90% and ROCE of 1.56% are far too low for a quality investment.
• At P/E 67.38, you are paying a high multiple for earnings that have all but disappeared; PEG of 2.11 is not meaningful.
• Piotroski F-Score of 4/9, no dividend, and trading below the 52-week range of ₹18.86–₹29.75 provide little margin of safety.

AI Analysis

Looking at Equilateral Ent., I am reminded that a rising top line means little if the bottom line is bleeding away. Sales grew nearly 32% and the latest quarter shows ₹10 Cr in revenue, yet net profit is ₹0 Cr; annual profit has fallen 80%. That tells me this is not a compounder. The company earns only 3.90% on equity and 1.56% on capital employed—far below what I would demand. The numbers reveal no durable moat; a 67.38 P/E with near-zero earnings is not a sign of quality. The balance sheet offers some support: book value is ₹9.14, so at ₹13.95 I am paying 1.53 times book. But a low P/B is not a bargain when returns are this weak. The Piotroski F-Score of 4/9 flags poor financial health, and with no dividend, I am not paid to wait. The shares trade below the stated 52-week range of ₹18.86–₹29.75, which is a red flag, not an opportunity. I cannot call this a wonderful business. At best it is a turnaround candidate, and turnarounds require proof of margin recovery. The 31.90% sales growth gives hope, but I need to see revenue convert into profit. Until sustainable net profit margins and higher ROCE appear, I will keep this on the watch list. In Graham's words, price is what you pay, value is what you get. Here, I see no clear value yet—only a cheap-looking stock that may get cheaper. I would rather miss this than risk capital on a business that does not earn a decent return.

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