Tirupati Innovar (539040)

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

Key Financials

Strengths

• P/B of 0.90 provides a margin of safety relative to book value of ₹24.44 per share.
• Trailing P/E of 5.10 appears inexpensive, if the earnings base is sustainable.
• Piotroski F-Score of 6/9 indicates a reasonably solid near-term financial position.
• Profit growth of 75% and low PEG of 0.07 show positive momentum, though quality needs verification.

Concerns

• Latest quarter recorded ₹0 Cr net profit despite ₹21 Cr sales, questioning earnings reliability.
• Sales growth is 0.00%, so 75% profit growth may be from low base or non-operating items.
• ROE of 5.84% and ROCE of 2.34% are far too low for a business with a durable competitive advantage.
• No dividend, no promoter holding data, and insufficient FairStock data reduce transparency.

AI Analysis

I look for wonderful businesses at fair prices, not poor businesses at wonderful prices. This appears to be the latter. At ₹21.93, the market values the entire company at ₹54 Cr, while book value stands at ₹24.44 per share. So I am buying a rupee of assets for 90 paise. That is classic Graham-style margin of safety on the balance sheet. But the income statement does not support a moat. ROE is just 5.84% and ROCE a paltry 2.34%. For every ₹100 of capital employed, only ₹2.34 comes back as operating return. A fixed deposit would do better. Sales growth is 0.00%, and the latest quarter shows ₹21 Cr in sales but ₹0 Cr in net profit. Where then does the trailing P/E of 5.10 come from? The 75% profit growth and PEG of 0.07 look tempting, but profit growth without sales growth and with a zero quarter is not the trustworthy compounding I seek. Piotroski F-Score of 6/9 suggests the balance sheet is not quickly deteriorating, but I need cash earnings, not just accounting scores. Promoter holding is not disclosed, and FairStock Score also says insufficient data. That leaves too many holes for a small-cap investment. There is no dividend, so returns must come from asset revaluation or genuine earnings power. The stock has already run from ₹5.53 to ₹21.93 in its 52-week range. I would need a durable earnings stream before calling this an investment; right now it is a possible asset play with poor capital returns and a serious red flag in the latest quarter.

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