Adhata Global (531286)

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

Key Financials

Strengths

• ROCE is positive at 10.26%, suggesting some operating-level return on capital employed despite the net loss.
• Latest quarter still shows sales of ₹1 crore, indicating the business is not completely dormant.
• Small market cap of ₹13 crore could create outsized returns if a genuine turnaround takes hold.
• No dividend payout means cash is not being distributed while the company is struggling.

Concerns

• Price-to-book of 10.25 is extremely expensive versus book value of ₹2.60 per share.
• ROE of -67.95% shows severe shareholder value destruction.
• Sales growth of -68.08% and profit growth of -156.10% indicate a business in sharp decline.
• Piotroski F-score of 3/9 points to poor fundamental health and high financial stress.

AI Analysis

At ₹26.65, Adhata Global carries a market cap of just ₹13 crore, yet its book value is only ₹2.60 per share. That means I am being asked to pay more than 10 times book value for a business whose return on equity is -67.95%. Graham's first rule is margin of safety, and there is none here: the price has completely separated from tangible assets. Sales have crashed by 68.08%, and profit growth has fallen by 156.10%, pushing the business deeply into loss-making territory. The latest quarter still shows negligible revenue of just ₹1 crore and a net profit rounded to ₹0 crore, which is effectively a small loss. The Piotroski F-score of 3 out of 9 confirms weak financial health. ROCE at 10.26% looks flattering only because the capital base has collapsed; it cannot offset the destruction in shareholder value. There is no dividend, promoter holding is not disclosed, and I cannot rely on any moat in a commoditised plywood and laminates business where competition is intense and pricing power is low. The 52-week range is unavailable, so I cannot even compare historical valuation. This is not a business I can value with confidence; it is a speculative call option on a turnaround. At 10.25 times book with negative earnings, the odds are poor. The company may have assets, and small scale can grow quickly if operations stabilise, but I need evidence of margin recovery, positive operating cash flow, and a sane entry price. As Buffett says, it is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. This is a weak company at an expensive price. I would keep it on the watch list, not in my portfolio.

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