Hira Automobile (531743)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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