Coromandel Engg. (533167)

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

Key Financials

AI Analysis

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

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.

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