Kanoria Energy (539620)

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

Key Financials

Strengths

• ROCE is positive at 8.15%, indicating some operating return from assets despite negligible net profit.
• Piotroski F-Score of 6/9 suggests the financial health scorecard is not poor.
• Latest quarter sales of ₹56 Cr annualize to roughly ₹224 Cr against a ₹307 Cr market cap, so the sales multiple is not extreme if margins recover.
• A small 0.31% dividend yield provides at least some cash return to shareholders.

Concerns

• Net profit is ₹0 Cr in the latest quarter and P/E is 0.00, leaving no earnings anchor for valuation.
• ROE is -0.04% and sales growth is -9.26%, reflecting weak profitability and shrinking revenue.
• Price is at the 52-week high of ₹34.54, or 3.03 times book value of ₹11.39, offering no margin of safety.
• Debt/equity and promoter holding are N/A, creating a transparency gap for a small-cap investor.

AI Analysis

At ₹34.54, Kanoria Energy is sitting at the very top of its 52-week range, yet the market cap of ₹307 Cr rests on a business that earned nothing in the latest quarter. The P/E reads 0.00 because net profit is zero; I cannot put a multiple on air. Book value is ₹11.39, so paying 3.03 times book for a cement-products business that produced a negative ROE of -0.04% makes no Graham sense. A -9.26% sales decline and zero quarterly profit tell me demand and pricing are weak. ROCE of 8.15% is positive, but it is hardly a standout return on capital for a cyclical commodity business. The Piotroski score of 6/9 is mildly encouraging, but it does not overcome the absence of real earnings power. The reported 75% profit growth is impressive only because the base is negligible; with net profit at ₹0 Cr in the latest quarter, that growth is illusory. The dividend yield of 0.31% offers no meaningful compensation while waiting. Debt/equity and promoter holding are shown as N/A; as an investor, I need clarity on leverage and insider ownership. This looks like a cyclical cement-products player near the top of its price range without earnings to justify it. I cannot find a margin of safety. Benjamin Graham said price is what you pay, value is what you get—here, I see no durable value. I will stay on the sidelines until earnings, returns on capital, and leverage are clearly reported and the price offers a discount to intrinsic worth.

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