Laddu Gopal (537707)

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

Key Financials

Strengths

• Latest quarter sales of ₹13 Cr imply an annual revenue run-rate roughly 2.5 times the ₹21 Cr market cap.
• Latest quarter net profit is around zero, not a large loss, suggesting limited near-term cash burn.
• Book value of ₹3.34 provides some asset backing per share, though at 6 times book the market already prices it richly.
• Stock has moved from ₹0.73 to ₹20.08 in the 52-week range, indicating strong market interest in the small-cap real estate story.

Concerns

• Profit growth of -101.89% and near-zero net profit mean trailing earnings cannot support the stock's P/E of 36.05.
• ROE of 1.09% and ROCE of 3.31% are far below any reasonable cost of capital, indicating poor shareholder value creation.
• Piotroski F-Score of 3/9 signals weak financial health across profitability, leverage, and operating efficiency.
• No dividend and no promoter holding disclosure add opacity and no income cushion for shareholders.

AI Analysis

Looking at Laddu Gopal, I am reminded that a rising price can hide a deteriorating business. The stock is at ₹20.08, at its 52-week high, yet the underlying economics are weak. Return on equity is just 1.09%, and ROCE is only 3.31% — far below what I could earn from a simple index fund or bond. With a P/E of 36.05 and net profit of essentially zero in the latest quarter, investors are paying a rich multiple for no visible earnings power. Profit growth has collapsed by 101.89%, and sales growth is flat at 0.00%. This is not a franchise with a moat; it is a small, cyclical real-estate player in a highly competitive industry. The book value is ₹3.34 per share, but the stock trades at 6.01 times book — a speculative premium, not a Graham-style bargain. The Piotroski F-score of 3 out of 9 reinforces my distrust: poor profitability, weak efficiency, and deteriorating fundamentals. There is no dividend to compensate while waiting. The only apparent strength is the stock's movement from ₹0.73 to ₹20.08, but price momentum is not something I rely on. At a market capitalization of ₹21 Cr with quarterly sales of ₹13 Cr, the company is not grossly overvalued on sales if execution improves — but the profit picture says otherwise. In Graham's terms, there is no margin of safety. I would pass on this and wait for better businesses at better prices.

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