Purohit Const. (538993)

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

Key Financials

Strengths

• Positive book value of ₹4.16 per share provides some asset backing, though the stock price is well above it.
• Tiny ₹6 crore market cap means even one meaningful project can materially change per-share value.
• Latest quarter's net loss rounds to ₹0 crore, suggesting the business is not burning large absolute amounts of cash.
• Current price of ₹14.30 is within the 52-week range of ₹10.80–₹15.91, indicating a quoted market for the shares.

Concerns

• ROE of -12.16% and ROCE of -13.60% show clear capital destruction.
• Latest quarter revenue is ₹0 crore and sales growth is 0.00%, leaving no visible revenue engine.
• At ₹14.30, the stock trades at 3.44 times book for a loss-making company; P/E is meaningless and there is no margin of safety.
• Piotroski F-Score of 2/9 and profit growth of -118.18% point to serious financial stress, with promoter holding also undisclosed.

AI Analysis

Let me begin with what the numbers tell me, not with stories. Purohit Const. has a market cap of just ₹6 crore and a share price of ₹14.30. The book value is ₹4.16, so I am being asked to pay 3.44 times book for a business that earns very poor returns. Return on equity is -12.16%; return on capital employed is -13.60%. That means management is destroying value. In the latest quarter, sales are ₹0 crore and net profit is also ₹0 crore (negative). Sales growth is 0.00%, and profit growth has collapsed by -118.18%. A Piotroski F-Score of 2 out of 9 is the kind of reading you get on troubled balance sheets, not on compounders. Can I find a margin of safety? No. There is no P/E because there is no meaningful positive earnings. There is no dividend yield. I cannot even examine promoter holding because it is N/A. The only tangible support is a positive book value of ₹4.16 per share, but at ₹14.30 the market already prices the stock at a huge premium to that support. In Graham's language, this is not a bargain; it is a small, unproven construction business asking me to underwrite results that have yet to appear. Could this become a turnaround? In Indian real estate, project completion can produce sudden revenue, and a tiny market cap leaves room for a catalyst. But a value investor does not pay up for hope. I would wait for evidence: positive operating cash flow, real quarterly revenue, profitable orders, or a price well below book value. Until then, Purohit Const. fails my tests.

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