Nagpur Power (532362)

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

Key Financials

AI Analysis

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

At ₹150.05, Nagpur Power has a market cap of just ₹197 crore. Graham would ask me what the business is earning; the answer is too little. The P/E is 109.35, and the latest quarter shows sales of ₹21 crore with net profit of zero. This is not the hallmark of a company I can value with confidence. The book value is ₹67.68, so I am paying 2.22 times book for a business whose return on equity is -0.13% and return on capital employed is only 3.37%. In the ferro and silica manganese industry, prices are cyclical and even a good sales number can disappear when alloy prices fall. Sales growth of 42.67% and profit growth of 117.56% look promising, but those percentages start from a very low earnings base and are not yet reflected in actual quarterly net profit. The Piotroski F-score of 7/9 does suggest some recent improvement, and that is worth noting, but it is a screening tool, not a substitute for durable economics. There is no dividend, so the patient owner receives no cash while waiting. I would need years of evidence that management can earn a meaningful return on capital through the cycle. Right now, this is a mediocre business at a high multiple; the margin of safety is missing. I prefer a wonderful business at a fair price, and at 109 times earnings, this is neither. I will keep watching, but I will not buy.

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