Hira Automobile (531743)

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

Key Financials

Strengths

• Book value per share of ₹51.37 provides tangible asset support; P/B of 1.26 is not a deep discount but is not stretched.
• Latest quarterly sales of ₹54 Cr annualize to roughly ₹216 Cr versus a market cap of just ₹18 Cr, showing meaningful operating scale.
• Sales growth of 6.84% is positive and shows some revenue resilience despite the profit collapse.
• ROCE of 8.95% is well above the 2.86% ROE, indicating operating assets are generating better returns than equity holders are seeing.

Concerns

• Earnings power is negligible: latest quarter net profit is ₹0 Cr, profit growth is -26.67%, and the P/E of 140.9 and PEG of 20.6 are indefensible for a distributor.
• ROE of 2.86% is far below acceptable levels, and with zero dividend yield, there is no cash return while waiting.
• Piotroski F-Score of 4/9 signals weak and deteriorating financial fundamentals.
• Data reliability is a red flag: 52-week range of ₹204.00-₹489.65 versus current price of ₹64.60, while promoter holding and debt/equity are not available.

AI Analysis

I start my analysis not with price but with business quality. Hira Automobile is a trading and distribution company, and that alone tells me there is no durable moat; margins are dictated by manufacturers, competition, and the auto cycle. The figures confirm a low-return enterprise. Book value is ₹51.37 per share, yet return on equity is only 2.86%. For every ₹100 of equity, the company earns less than ₹3. I can do better in a boring index fund. ROCE of 8.95% is less poor, but still not exciting. Sales grew 6.84%, yet profit fell 26.67%, and the latest quarter shows net profit of ₹0 crore. A shareholder is getting no earnings at the margin. At ₹64.60, the P/E is 140.9 and the PEG ratio is 20.6. That is not a price I want to pay for a distributor. The market cap is only ₹18 crore, while the price-to-book ratio is 1.26, so the stock is not a net-net asset play. The Piotroski F-score of 4/9 reinforces my caution: the financial health is weak and getting weaker. There is no dividend yield, so I am not even being paid to wait. I also notice that the quoted 52-week range of ₹204.00 to ₹489.65 is far above the current price of ₹64.60; either the data is stale or there has been a corporate action, and I cannot comfortably trust a story I cannot verify. Promoter holding and debt-to-equity are also absent, so transparency is missing. As a Graham-Buffett investor, I need a moat, rational management, and a margin of safety. This business lacks a moat, profit is collapsing, and the only modest support is book value. I would pass.

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