Narendra Prop. (531416)

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

Key Financials

Strengths

• Trading at a discount to book value: P/B of 0.78 against book value of ₹55.13 per share.
• Reasonable valuation with P/E of 10.64 and dividend yield of 2.88%.
• Latest quarter profitable with sales of ₹4 Cr and net profit of ₹1 Cr.
• Piotroski F-Score of 6/9 suggests acceptable basic financial health.
• Profit growth of 900% shows margin improvement, though from a low base.

Concerns

• Sales growth is 0.00%, so there is no top-line expansion driving the business.
• Return on equity of 6.12% and ROCE of 3.31% indicate weak capital efficiency.
• Profit growth of 900% with flat sales may be a one-time gain or low-base effect; PEG of 0.01 is misleading.
• Promoter holding and debt-to-equity are not disclosed, leaving ownership alignment and leverage unknown.

AI Analysis

When I look at Narendra Prop., I see a small real estate company selling below its stated book value—₹42.99 against ₹55.13 per share. That gives a margin of safety only if the book value is honest. In real estate, book values can be optimistic, so I must be cautious. The P/E of 10.64 is not demanding, and the 2.88% dividend yield means I get paid while waiting. But the business quality is not impressive. Return on equity is only 6.12%, and return on capital employed is just 3.31%. A mediocre business is not rescued by a cheap price alone. I cannot identify a durable moat here; residential and commercial projects are competitive, cyclical, and capital-intensive. Flat sales growth of 0.00% bothers me. A profit growth of 900% with no revenue expansion smells like a low base or a one-time gain, not a compounding engine. The PEG of 0.01 is misleading in this context. The latest quarter shows sales of ₹4 crore and net profit of ₹1 crore; if that repeats, the stock may look cheaper than the trailing P/E suggests, but I cannot assume that. The Piotroski F-Score of 6 out of 9 is acceptable, but not a strong signal. I also lack two critical pieces of information: promoter holding and debt-to-equity. Without those, I cannot judge promoter alignment or financial risk properly. In true Graham style, I would treat this as an asset play, not a growth story. I would want evidence that the underlying land and projects can be sold or developed at book value or better. Until I see sales growth and stable margins, this is a 'show me' situation. I would keep any position small and monitor very carefully.

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