Mukta Agricultur (535204)

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

Key Financials

Strengths

• Trades at ₹3.75 against book value ₹9.36, a P/B of 0.40—offers a wide margin of safety if assets are genuine.
• Piotroski F-Score of 6/9 indicates moderate balance-sheet health; no immediate distress signals in the reported metrics.
• Profit growth of 119% shows some recovery in profitability from a low base, even though current-quarter profit is zero.
• Price is close to its 52-week high of ₹3.78, suggesting recent market interest or a turnaround narrative.

Concerns

• Latest quarter sales and net profit are both ₹0 Cr—core operations are currently generating no revenue or profit.
• ROE of 0.46% and ROCE of 0.57% mean the company earns negligible returns on equity and capital employed.
• P/E of 56.8 and PEG of 0.48 are misleading because profit growth is from a negligible base and current earnings are zero.
• No dividend; promoter holding and debt/equity are N/A, leaving transparency and leverage concerns.

AI Analysis

At ₹3.75 against book value of ₹9.36, Mukta Agricultur sells at a 60% discount. That is a classic Graham asset-play setup. But I need more than a low P/B; I need earning power. Here, ROE is 0.46% and ROCE 0.57%. The company earns less than half a rupee for every hundred rupees of equity. The latest quarter has ₹0 Cr sales and ₹0 Cr profit. There is no operating pulse. Sales growth is 0%, and the 119% profit growth is from a negligible base—with zero current-quarter profit, it is arithmetic noise. A P/E of 56.8 on tiny earnings means little; the PEG of 0.48 is a mirage. This is a small trading and distribution business with an ₹8 Cr market cap. Such businesses rarely have durable moats. No pricing power or scale is visible. The F-Score of 6/9 is a mild positive on financial health, but it doesn't make the economics attractive. No dividend, promoter holding not disclosed—that leaves too many questions about minority treatment. The only reason to own it is as an asset play. The price offers ₹3.75 for a claimed ₹9.36 of book value. But if those assets are not earning, I must verify they are real and realizable. Are they cash, receivables, inventory, or stale fixed assets? Are there hidden liabilities? I have D/E not available, so the leverage picture is unclear. I need a catalyst: a sale, a revival, or a liquidation. Without it, the discount can persist or even widen. Graham would not buy a stock just because it is cheap; he would buy when the margin of safety is supported by facts. Here, the facts are too thin. I will keep it on the watchlist, not in the portfolio.

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