Natl. Gen. Inds. (531651)

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

Key Financials

Strengths

• Price is only 1.08 times book value of ₹69.71 per share, offering some asset backing.
• Sales grew 3.80%, indicating the business still has some revenue momentum.
• Latest quarter generated ₹3 Cr in sales, showing active operations despite zero net profit.
• Market cap of ₹42 Cr is small, so even modest absolute earnings can have an outsized impact on valuation.

Concerns

• Trailing P/E is 0.00 and latest quarterly net profit is ₹0 Cr; there is no earnings support for the current price.
• Profit growth is -25%, ROE is 0.00%, and ROCE is only 3.22%; capital is earning almost nothing.
• Piotroski F-Score of 4/9 points to weak financial health.
• No dividend, promoter holding is N/A, and the stock is at its 52-week high of ₹75.49 despite poor profitability.

AI Analysis

This business does not yet pass the Buffett test. Natl. Gen. Inds. is an iron and steel products company with a market cap of just ₹42 Cr and a price of ₹75.49. The P/E is zero because trailing net profit is zero, and the latest quarter tells the same story: ₹3 Cr of sales and ₹0 Cr of net profit. As an owner, I would be earning nothing on my capital. The return on equity is 0.00%, and the return on capital employed is only 3.22%, which is below a satisfactory threshold. Book value is ₹69.71 per share, so at ₹75.49 I am paying only 1.08 times book. That is not a crazy price for the assets, but assets that produce no earnings are not exciting. The Piotroski F-score of 4/9 signals weak financial health, and profit growth has declined 25% even though sales grew 3.80%. That tells me sales growth is not converting into wealth for shareholders. There is no dividend, and promoter holding is not disclosed, so I cannot judge insider ownership. The stock is at its 52-week high of ₹75.49, yet the fundamentals look like a cyclical trough. A Graham-style investor would demand a margin of safety; at this price, with no earnings and no dividend, I do not see one. I would wait and watch for either a meaningful fall in price or clear evidence that earnings are recovering before committing capital. This is a commodity-type business with limited moat, and the numbers suggest patience, not action.

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