Mystic Electron. (535205)

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

Key Financials

Strengths

• Deep asset discount: price ₹4.69 vs book value ₹13.70 (P/B 0.34)
• Low trailing P/E of 7.33 suggests modest price relative to reported earnings
• Piotroski F-Score 6/9 indicates reasonable financial health signals
• Reported profit growth of 102.38% and PEG of 0.07, though base-effect likely

Concerns

• Latest quarter sales and net profit are both ₹0 Cr, so current operational activity is absent
• Low returns: ROE 2.98% and ROCE 3.87% indicate poor capital efficiency
• No dividend yield and no sales growth (0.00%), so shareholders rely on re-rating or asset conversion
• Promoter holding and debt/equity are N/A, creating transparency and alignment uncertainty

AI Analysis

At ₹4.69, Mystic Electron is a micro-cap with a market cap of just ₹9 Cr. The first thing that catches my eye is the balance sheet: book value is ₹13.70, so the stock trades at 0.34 times book—a deep discount. The P/E of 7.33 also looks cheap. But Graham taught me that a bargain must be tested with questions. The latest quarter shows sales of ₹0 Cr and net profit of ₹0 Cr. That is a red flag. A company with no current revenue or profit cannot be judged on trailing multiples; the earnings power is not visible. ROE is only 2.98% and ROCE is 3.87%, meaning the assets earn very little. The 102.38% profit growth may look attractive, but with 0.00% sales growth, it is probably a base-effect artifact. There is no dividend, so the investor's only return is from a re-rating or asset realisation. Promoter holding is not disclosed, which worries me; in a small trading company, promoter alignment matters enormously. On a positive note, the Piotroski F-Score of 6/9 suggests the company is not in obvious financial distress, and the PEG ratio of 0.07 is low—but only if the profit growth is sustainable, which the zero quarter makes doubtful. I would not call this a growing enterprise; it looks more like a potential asset play. At ₹4.69, the market is pricing in little hope beyond the book value. If the ₹13.70 book value is real, liquid, and honestly stated, there is a margin of safety. But low ROE and zero quarterly activity tell me this is not a compounding machine. I would want to see the full balance sheet and understand what those assets are before acting.

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