Coromandel Engg. (533167)

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

Key Financials

Strengths

• Trailing earnings are still positive, as evidenced by a finite P/E of 131.26, so the company has not slipped into a reported loss.
• ROCE of 8.65% is positive, indicating the existing capital base is at least generating some operating return.
• Current price of ₹66.46 is near the lower end of its 52-week range (₹56.58-₹114.93), reducing the assumption of high momentum risk.
• Latest quarter still recorded sales of ₹6 Cr, showing ongoing project activity rather than a complete stall.

Concerns

• Profit growth has collapsed by 94.03%, and latest net profit is effectively ₹0 Cr on sales of ₹6 Cr, so current earnings power is almost nil.
• Valuation is extreme: P/E 131.26 and P/B 511.23 versus book value of only ₹0.13; there is no margin of safety.
• Piotroski F-score of 3/9 signals weak financial health across profitability, leverage/liquidity, and operating efficiency.
• No dividend, promoter holding N/A, and debt-equity data N/A mean I cannot assess cash returns to shareholders or balance sheet leverage.

AI Analysis

Let me start with what the figures say. Coromandel Engg. is a small real estate developer with a market cap of ₹231 Cr, but the earnings do not support the price. The P/E is 131.26, the P/B is 511.23, and book value is just ₹0.13 per share. Graham taught me that price is what you pay, value is what you get. At this price, I do not see value; I see hope priced in. The trailing ROE of 504.71% looks remarkable, but it is a mirage created by a tiny equity base. The more honest measure, ROCE, is only 8.65% — barely acceptable, not a compounding engine. Sales are declining by 7.78%, and profit growth has collapsed by 94.03%. The latest quarter shows sales of just ₹6 Cr and net profit of ₹0 Cr. A business with these numbers cannot command a premium multiple. The Piotroski F-score of 3 out of 9 reinforces my caution: weak profitability and weak fundamentals. There is no dividend to reward shareholders while waiting. Promoter holding is not available, so I cannot judge whether insiders have sufficient skin in the game. In residential and commercial projects, there is rarely a durable moat — each project brings new competition, execution risk, and cyclical demand. This looks like a cyclical or turnaround situation, not a franchise. I would need strong evidence of recovery: increasing quarterly sales, positive and growing net profit, ROCE moving comfortably above 8.65%, and an improved F-score. Until then, the margin of safety is absent. The market is capitalizing near-zero earnings at a very high multiple. As Buffett would say, it is far better to buy a wonderful business at a fair price than a struggling business at any price. This one goes into the 'too hard' pile.

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