Kesar Terminals (533289)

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

Key Financials

Strengths

• Trading near book value with P/B of 1.12, limiting downside if asset values hold
• Piotroski F-Score of 6/9 indicates reasonable financial health on fundamental metrics
• Latest quarter turned profitable with ₹1 Cr net profit on ₹8 Cr sales
• Dividend yield of 0.78% offers a modest income while waiting for a recovery

Concerns

• ROE is deeply negative at -37.35%, indicating severe shareholder value erosion
• Sales declining at -3.63% in a competitive logistics industry with no clear moat
• P/E of 27.52 is expensive given weak earnings and uncertain future growth
• Debt/Equity and promoter holding data unavailable, leaving critical governance and leverage risks unassessed

AI Analysis

At first glance, Kesar Terminals looks cheap at a P/B of 1.12 and a book value of ₹85.99 against a price of ₹96.60. But cheap can be a trap. The ROE is a brutal -37.35%, which tells me this business is destroying shareholder equity, not building it. A positive ROCE of 6.54% is a small consolation, but it barely clears the cost of capital in today's India. Sales are shrinking at -3.63%, and while the latest quarter shows ₹8 Cr in sales and ₹1 Cr in profit, that's a thin, volatile margin. The reported profit growth of 1000% is a statistical illusion from a low base; Graham would laugh at such a figure. The P/E of 27.52 is unjustified for a logistics provider with no pricing power and no visible moat. I cannot rely on the PEG of 0.03 because it's built on distorted earnings. There is some comfort in the Piotroski score of 6/9, suggesting balance sheet discipline, and the dividend yield of 0.78% shows a little respect for shareholders. But without debt-to-equity data or promoter holding details, I'm flying blind. This is not a compounder. It's a potential turnaround, but only if the negative ROE reverses and sales stabilize. I would demand a wide margin of safety before putting money here. At ₹96.60, you're paying for hope, not proven performance.

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