Jayatma Industri (531323)

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

Key Financials

Strengths

• Trades at a 41% discount to book value (P/B 0.59 against BV ₹19.40)
• Sales growth of 50.54% shows some demand traction
• Micro-cap size of ₹7 Cr offers potential for a re-rating if operations improve

Concerns

• Negative ROE of -18.76% and ROCE of -3.50% indicate capital destruction
• Profit growth collapsed by -150%; latest quarter net profit is ₹-0 Cr
• Piotroski F-Score of 3/9 signals weak financial health
• No dividend yield and zero promoter holding disclosure add opacity

AI Analysis

At ₹11.50, Jayatma Industri sells at a 41% discount to its book value of ₹19.40. That looks like a classic asset play, but Ben Graham would demand more than a cheap price tag. The business earns a negative return on equity of -18.76% and a negative ROCE of -3.50%, meaning every rupee of retained capital is being destroyed. The latest quarter shows net profit of ₹-0 Cr — essentially breakeven, but not acceptable on a ₹15 Cr sales base. Profit growth of -150% confirms the deterioration. While sales grew 50.54%, the bottom line tells a different story: this is a company growing its top line without any pricing power or cost control. The Piotroski F-Score of 3/9 reinforces my caution; nine-point scale, only three boxes ticked, pointing to weak financial health. There's no dividend to compensate me while I wait. The 52-week range of ₹11.61-₹16.20 tells me the market has already marked it down. The discount to book might offer a margin of safety, but that margin shrinks when returns are negative. As Graham said, 'Price is what you pay; value is what you get.' Here, the value is eroding book value. I would not classify this as a stalwart or grower. It's a potential asset play, but only if management can reverse the negative returns. I need to watch whether sales growth can ever translate into positive earnings, and whether the book value stays intact. Debt/Equity is not disclosed, which bothers me. A tiny ₹7 Cr market cap means limited institutional oversight. This is not a business I'd losing sleep over, but not one to buy without a clear catalyst. For now, I'd wait.

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