Kalpa Commer. (539014)

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

Key Financials

Strengths

• Price of ₹1.71 versus book value of ₹25.83 offers a 93% discount to stated book (P/B 0.07), providing potential margin of safety
• Latest quarter turned positive with ₹9 crore sales and ₹1 crore net profit, and profit growth of 296.55% shows some recovery momentum
• Piotroski F-score of 5/9 suggests the business is not on the verge of financial collapse based on the available metrics
• No reported debt-to-equity overhang means the risk is more about asset quality than immediate leverage

Concerns

• Negative ROE of -6.87% and ROCE of -10.94% indicate ongoing value destruction on equity and capital employed
• Sales growth is 0.00% and dividend yield is 0.00%, offering no organic growth or income to shareholders
• Market cap is effectively ₹0 crore and the current price of ₹1.71 is below the 52-week range of ₹7.40-₹16.47, suggesting extreme illiquidity or data anomalies
• Promoter holding is N/A, leaving ownership and governance transparency uncertain

AI Analysis

Looking at Kalpa Commer, I see a business that on the surface is not a wonderful compounder. It is a trading and distribution enterprise, a sector where durable competitive advantages are rare. The trailing returns confirm this: ROE is -6.87%, ROCE is -10.94%, and sales growth is flat at 0.00%. This is not the kind of franchise I would want to own for its economics. Yet the balance sheet tells another story. The stock trades at ₹1.71 while book value stands at ₹25.83, giving a price-to-book of just 0.07. That is a 93% discount to stated book value. Even allowing for asset quality problems, that gap is so wide it arrests my attention. The latest quarter shows sales of ₹9 crore and net profit of ₹1 crore, and reported profit growth of 296.55%, albeit from a very low base. The Piotroski F-score of 5 out of 9 is mediocre, not a red flag. But there are serious caveats. Market capitalisation is effectively ₹0 crore, meaning this is a micro-cap with likely illiquid trading, and promoter holding is not disclosed. The current price of ₹1.71 sits below the 52-week range of ₹7.40 to ₹16.47, which makes me wonder about data reliability or a sharp corporate adjustment. A P/B of 0.07 usually signals either a broken business or a possible asset play. Graham would ask: is this asset real, or is it illiquid inventory in a weak trading firm? At this price, there is margin of safety if book value is credible and if shareholders can force value. But a negative ROE and no dividend mean the company must either improve operations or return capital. This is not a growth story; it is a speculation on asset realisation. I would demand far more disclosure on receivables, inventory, and promoter intent before committing a single rupee.

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