Khyati Multimed. (531692)

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

Key Financials

Strengths

• Trailing earnings are positive, allowing a reported P/E of 108.33 rather than negative earnings.
• Piotroski F-Score of 5/9 indicates some signals of financial stability, not complete distress.
• The stock is trading at the top of its 52-week range of ₹2.29-₹4.43, showing strong recent price momentum.
• Book value of ₹0.98 per share and a ₹5 Cr market cap provide a defined asset base to study for any hidden value.

Concerns

• Sales growth of -100% and latest quarter sales of ₹0 Cr mean no visible operating activity.
• ROCE of -60.48% shows severe economic value destruction; the company is not earning its cost of capital.
• Valuation is rich with P/E 108.33 and P/B 4.52 versus just 2.45% ROE and zero dividend.
• Promoter holding is N/A and latest quarter net profit is -₹0 Cr, so transparency and cash generation are absent.

AI Analysis

I approach any stock by asking: what does this business earn, and how does it treat capital? Khyati Multimed fails both tests. Here is a hotel/resort company with zero sales in the latest quarter and -100% sales growth. A hotel without revenue is not an operating business; it is an expense engine. The return on equity is just 2.45%, while return on capital employed is -60.48%. In other words, the capital inside the company is being destroyed, not compounded. The reported profit growth of 55.56% is misleading when the base is so small; a few lakh rupees of earnings on a ₹5 Cr market cap gives a P/E of 108.33. That is not value, it is hope. Book value is ₹0.98 per share, so paying ₹4.43 means 4.5 times book for a business earning 2.45% on equity. Graham would say there is no margin of safety. The Piotroski score of 5 suggests some signs of financial health, but I cannot trust a score when sales are zero and promoter holding is not disclosed. With zero dividend and no revenue, shareholders receive no cash while waiting for a turnaround. The only positive is the market has lifted the stock to its 52-week high, but price action is not investment analysis. This is a speculative microcap, not a compounder. I would keep it on the too hard pile unless management demonstrates real sales, positive ROCE, and honest disclosure. In the end, price is what you pay, value is what you get. Here, I see little value.

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