Vardhman Concr. (531444)

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

Key Financials

Strengths

• Headline P/E of 10.85 is low, if one can trust the earnings base
• Reported profit growth of 72.73% and PEG of 0.15 suggest some improvement in profitability
• Piotroski F-score of 5/9 indicates moderate financial health rather than severe distress
• Price of ₹8.64 is nearer the low end of the 52-week range, offering a slim margin of safety for a speculative buyer

Concerns

• Latest quarter sales of ₹0 Cr and net profit of ₹-0 Cr show negligible or no actual business activity
• ROE at -3.33% and ROCE at -3.73% confirm the company is destroying value
• Sales growth is 0.00% and dividend yield is 0.00%, offering no earnings growth or shareholder return
• Promoter holding, book value, and debt-equity ratio are all N/A, leaving a severe lack of transparency

AI Analysis

Looking at Vardhman Concr., I am reminded why Benjamin Graham insisted on margin of safety. At ₹8.64, the market cap is just ₹6 Cr, and the P/E is 10.85. But the P/E is a seductive figure when earnings are unreliable. Latest quarter sales are ₹0 Cr and net profit is ₹-0 Cr—essentially no operating activity to speak of. Trailing profit growth of 72.73% looks attractive, but on such a tiny base, it is meaningless. The PEG of 0.15 is a warning sign, not a bargain signal: it assumes the growth rate is real and sustainable, when the underlying business shows no such evidence. ROE is -3.33% and ROCE is -3.73%, meaning this company is not earning a return on either equity or capital; it is destroying value. Sales growth is 0.00%, and there is no dividend. There is no book value, no debt-equity ratio, and no promoter holding data available. In Graham's language, this is not an investment operation that promises safety of principal and an adequate return. It is a speculator's ticket. The Piotroski F-score of 5/9 is mediocre and gives no reason for confidence. I would want to see several years of positive earnings, strong operating cash flow, disclosed promoter ownership, and a clear path to profitable sales before I could call this a wonderful business at a fair price. In cement and cement products, scale and distribution matter, but with zero current revenue, there is no moat. I cannot calculate intrinsic value with these figures, so in the absence of insight, I pass. This may be an asset play or a turnaround someday, but the numbers today do not support it.

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