Shri Vasuprada (538092)

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

Key Financials

Strengths

• Trades at a 39% discount to book value: P/B 0.61 against book value of Rs147.89.
• Latest quarter shows revenue of Rs46 Cr and net profit of Rs5 Cr, indicating possible momentum.
• Sales growth of 24.47% and profit growth of 21.85% are encouraging if sustained.
• Piotroski F-Score of 7/9 points to improving financial health on multiple fundamental metrics.

Concerns

• Extremely low returns: ROE 0.11% and ROCE 0.92% suggest weak asset productivity or commodity headwinds.
• P/E of 0.00 implies trailing earnings are unreliable or negligible despite one strong quarter.
• No dividend yield, so shareholders depend entirely on asset re-rating or a genuine turnaround.
• Missing data on debt/equity, promoter holding, and other governance details reduces confidence.

AI Analysis

At Rs90.30, Shri Vasuprada is the kind of asset-centric puzzle Graham would circle. The stock trades at 0.61 times book value of Rs147.89, so I am effectively buying Rs148 of tangible assets for Rs90. But book value is only a starting point. Tea and coffee are undifferentiated commodities; without pricing power, assets can be worth far less than stated if they cannot generate returns. The evidence is blunt: ROE is 0.11%, ROCE 0.92%. That is terrible capital efficiency. It fails my test of a good business. Why own an asset that earns almost nothing? The latest quarter shows sales of Rs46 Cr and net profit of Rs5 Cr, and reported sales and profit growth around 22-24%. That catches my eye, but one quarter is not a trend. P/E is shown as 0.00, which tells me trailing earnings are unreliable or negligible. There is no dividend. So patience is required. On the positive side, the Piotroski score of 7/9 suggests the company's financial health has improved on several metrics. The stock is near its 52-week low of Rs85.55, so market expectations are low. As a value investor, I need margin of safety. Buying below book provides some, but only if management redeploys assets wisely or generates a real turnaround. If tea prices stay depressed, book value can erode. I would not call this a wonderful business; I would call it a possible asset play with a turnaround hope embedded. I need more information: debt/equity is missing, promoter holding is unknown, and the one strong quarter must be confirmed. In small Indian tea companies, minority shareholders can suffer if capital is wasted. So I will keep it on my watchlist, not rush. The price is interesting, but cheap can become cheaper when returns are this low.

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