Kiran Vyapar (537750)

FairStock Score: 1/100 — RISKY

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

Key Financials

Strengths

• Trades at a steep discount to book value: P/B of 0.45 versus book value of ₹419.88
• Sales growth of 12.57% shows some revenue momentum
• ROCE of 4.05% indicates some return on capital before taxes
• Small dividend yield of 0.55% provides a minor cash return

Concerns

• Latest quarter net loss of ₹3 Cr and negative ROE of -0.36%
• Profit growth deeply negative at -130.32%, with absurd P/E of 390.97 and PEG of 31.10
• Piotroski F-Score of 4/9 signals weak fundamental health
• Lack of debt/equity and promoter holding data makes risk assessment incomplete

AI Analysis

At ₹188.95, Kiran Vyapar trades at only 0.45 times book value, while stated book value stands at ₹419.88. That kind of discount catches my eye, but Ben Graham taught me that a bargain must be tested by earning power, not just the balance sheet. The latest quarter shows sales of ₹35 Cr but a net loss of ₹3 Cr. Trailing ROE is -0.36%, and ROCE is just 4.05%. A P/E of 390.97 and a profit decline of -130.32% tell me the earnings engine is not working. Sales growth of 12.57% is encouraging, but it is not converting to the bottom line. The Piotroski F-score of 4/9 also suggests weak financial health. I cannot even inspect debt-to-equity or promoter holding from the data I have, so basic tests of leverage and alignment are missing. The dividend yield of 0.55% is token compensation at best. Why would the market price this so far below book? Usually because assets are not worth what the balance sheet claims, or because returns are structurally poor. This has the characteristics of an asset play, not a quality compounder. Graham would say the low P/B gives a cushion, but only if the assets are real and productive. The FairStock Score of 4/100, combined with a PEG of 31.10, is a red flag. I do not want to rely on hope. I would wait for net profit to turn positive, ROE to become meaningfully positive, and evidence that the book value is actually being put to profitable use. Until then, this is a cigar butt with perhaps one puff left — or maybe none.

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