USG Tech (532402)

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

Key Financials

Strengths

• Price is close to stated book value: P/B of 1.07 versus book value of ₹8.73 per share provides a rough downside reference if assets are genuine.
• Debt/Equity is reported as N/A, so there is no visible sign of a heavy debt burden threatening the balance sheet.
• Piotroski F-Score of 5/9 shows a few positive financial signals, though it is far from a strong fundamental score.
• A market cap of just ₹37 crore means investors do not need to put in large capital to monitor the story.

Concerns

• Latest quarter shows ₹0 crore sales and -₹0 crore net profit, meaning the business has no current operating earnings.
• ROE of -0.52% and ROCE of -1.17% indicate the equity base is not earning an acceptable return.
• Promoter holding is N/A and FairStock Score is unavailable, creating serious transparency and governance risk.
• The 75% profit growth is misleading because it comes from a negligible or negative base; there is also no dividend to support shareholders.

AI Analysis

At ₹9.34, USG Tech looks like a Graham cigar butt: cheap on the surface, but with no clear fire. The market cap is ₹37 crore and book value is ₹8.73 per share, so I am paying only 1.07 times stated equity. That seems like a margin of safety until I look closer. P/E of 0.00 means there are no positive earnings. The latest quarter shows sales of ₹0 crore and a net profit of -₹0 crore. This is not an operating business; it is a shell with some assets on paper. ROE is -0.52% and ROCE -1.17%, confirming that the equity capital is not earning anything. The reported profit growth of 75% is an illusion because it is off a negligible or negative base. Zero dividend yield means I receive no income, and with no revenue, there is no compounding. In IT-enabled services, a real franchise needs clients, repeat revenues, and scale; none of this shows up in the numbers. Debt/Equity is listed as N/A, so I cannot even confirm the balance-sheet risk. Promoter holding is N/A, which bothers me greatly—I want owners who are aligned with minority shareholders. The Piotroski F-Score of 5 out of 9 is middling, not a strong vote of confidence. FairStock Score is unavailable, another sign of insufficient data. The 52-week range of ₹6.53 to ₹13.74 suggests speculative trading. Graham would say: an asset play is only attractive if assets are real, earning power exists, and the price has a clear discount. Here, I am paying a small premium to book for a business that is not earning. Without signs of revenue revival or a tangible catalyst, I cannot call this value investing—it is speculating on a balance sheet. I will pass unless management shows me earnings.

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