H. S. India (532145)

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

Key Financials

Strengths

• Stock trades at a discount to book value: P/B 0.79 versus book value of ₹21.65 and price of ₹17.12
• Trailing P/E of 14.88 and latest quarter net profit of ₹1 Cr show the company is still profitable
• ROE and ROCE are positive at 4.22% and 7.04%, so capital is not being destroyed despite weak returns

Concerns

• Sales growth is negative at -1.94% and profit growth is down -15.07%, indicating a shrinking business
• Piotroski F-Score of 3/9 points to weak financial and operational health
• Dividend yield is 0.00%, so minority shareholders get no income while waiting for value
• Returns are low: ROE of 4.22% and ROCE of 7.04% do not justify a premium to book

AI Analysis

Let me look at H.S. India with a Graham-Buffett lens. At ₹17.12, the market is pricing this small hotelier at only 0.79 times book value, while the stated book value is ₹21.65. That sounds like the kind of statistical bargain Graham might scan for, but I must ask: is the business earning an acceptable return on that book? No. ROE is just 4.22% and ROCE is 7.04%. Mr. Market is offering a discount because the asset base is not producing much, and the underlying operations are slipping: sales fell 1.94%, and profits dropped 15.07%. A Piotroski F-Score of 3/9 is a serious warning flag. It tells me this firm scores poorly on profitability and operating-efficiency markers; this is not a high-quality franchise. There is no dividend yield, so I receive no income while waiting for value to surface. The latest quarter shows sales of ₹7 crore and net profit of ₹1 crore, so the business is still breathing, but that is not enough to excite me. The 52-week range of ₹8.35 to ₹17.12, and the stock now sitting at the high end, means it has already had a run; buying below book after a rally requires even more caution. This looks more like an asset play than a compounding machine. Hotel properties can be worth more than depressed earnings imply, but I need evidence of capital being allocated wisely. With no promoter holding data and the FairStock score unavailable due to insufficient data, I am flying partially blind. I would need sustained quarterly profits, improving returns, and a clear sign that book value is being translated into shareholder value. Until then, this is a small, mediocre-earning asset at a below-book valuation—interesting only as a possible asset-backed situation, not a core holding.

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