Vasudhagama Ent. (539291)

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

Key Financials

Strengths

• P/B of 0.81 offers a 19% discount to stated book value of ₹28.14 per share.
• Market cap of ₹100 Cr is below estimated book equity of roughly ₹123 Cr, creating possible asset-backed upside if assets are clean.
• The low headline P/E of 4.97 could become meaningful only if the collapsed earnings recover; current evidence does not support that.

Concerns

• Sales down 85.99% and profits down 86.67%; latest quarter sales just ₹1 Cr and net profit ₹0 Cr.
• ROE of 0.79% and ROCE of 2.88% reflect negligible return on capital.
• Piotroski F-Score of 3/9, zero dividend, and undisclosed promoter holding and debt/equity raise governance and balance-sheet doubts.
• Stated P/E of 4.97 is misleading; implied P/E based on ROE is well above 100.

AI Analysis

At first glance, Vasudhagama looks like a Graham-type asset play: price ₹22.81 against book value ₹28.14, a P/B of 0.81. But Graham never bought book value in isolation; he demanded earnings power and a margin of safety from a continuing business. Here the earnings have collapsed. The stated P/E of 4.97 is simply not credible. With ROE of 0.79% and book value of ₹28.14, the implied EPS is only about ₹0.22, which puts the true P/E above 100 at the current price. Sales are down 85.99%, profits down 86.67%, and the latest quarter reports sales of ₹1 crore and net profit of zero—the operation is barely alive. ROCE of 2.88% is far below what I could earn in a bank fixed deposit, so this capital is not being used productively. This is an 'Other Agricultural Products' company in a commodity business; there is no brand, no pricing power, no scale, and no moat. The Piotroski F-Score of 3/9 reinforces the weak financial health. There is also no dividend, so minority holders receive no cash while the business shrinks. The market cap of ₹100 Cr sits below my rough estimate of book equity of about ₹123 Cr (₹28.14 × 4.4 Cr shares), but a discount to book is only valuable if the assets are real, earning power exists, or a catalyst will unlock value. Promoter holding and debt/equity are unavailable, which is a red flag for a small-cap agri business. In India, such balance sheets often hide stale inventory, doubtful receivables, or unrelated investments. The 52-week range from ₹1.08 to ₹22.81 shows a massive re-rating, but price movement does not create intrinsic value. As Buffett says, price is what you pay; value is what you get. I see a broken operating business wrapped in a statistically cheap cover. I will not invest.

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