Tirupati Sarjan (531814)

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

Key Financials

Strengths

• Trades at a significant discount to book value: P/B of 0.46 against book value of ₹30.09.
• Sales growth of 29.08% shows the business is still winning project work.
• Low P/E of 6.94 and PEG of 0.24 make it statistically inexpensive.
• Price has recovered strongly from ₹6.45 to ₹13.99, indicating some market interest.

Concerns

• Profit growth is negative at -7.24%; latest quarter profit of ₹1 Cr on ₹69 Cr sales shows very thin margins.
• Low ROE of 5.62% and ROCE of 9.08% suggest assets are not generating attractive returns.
• Piotroski F-Score of 4/9 signals weak financial health.
• No dividend, no disclosed debt-to-equity, and no promoter holding data reduce transparency.

AI Analysis

At ₹13.99, Tirupati Sarjan sells at less than half its book value of ₹30.09. Graham would call that a statistical bargain, but a low price-to-book is not enough; I need earning power. The company earns only 5.62% on equity and 9.08% on capital employed, so its assets are not being put to superior use. Sales grew 29.08%, which sounds fine, yet profit actually fell 7.24%. The latest quarter says it all: ₹69 crore of sales produced just ₹1 crore of net profit. That is a razor-thin margin and a sign that top-line growth is not converting into wealth for shareholders. The Piotroski score of 4 out of 9 reinforces my caution. I also do not know debt-to-equity, promoter holding, or any detail on the balance sheet's quality. In a business like real-estate development, book value can be misleading; a stated book value of ₹30.09 may not equal realizable value. With zero dividend, I am not being paid to wait. The P/E of 6.94 and PEG of 0.24 look low, but they are useful only if profits are stable and growing; here, the profit trend is downward. The stock has already risen from ₹6.45 to ₹13.99 over the past year, so the easy money from the recovery may have been made. This is not a franchise with a moat; it is a project-driven, cyclical business operating with weak returns. I would classify it as an asset play, but only if the book value is genuine and the balance sheet is sound. I need more data and several quarters of improving profitability before I can call this a prudent investment. Until then, the margin of safety is apparent but unproven.

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