Darjeeling Industriies (539770)

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

Key Financials

Strengths

• Trades near book value: P/B 1.05 vs book value ₹7.33, limiting downside if assets are genuine.
• Reported ROE of 23.02% suggests recent equity returns are strong on paper.
• Latest quarter is net positive: sales ₹3 Cr and net profit ₹1 Cr.
• PEG of 0.02 superficially looks cheap, though driven by low-base profit growth.

Concerns

• Data inconsistency: current price ₹7.70 is below the stated 52-week low of ₹23.25, and quarterly profit of ₹1 Cr conflicts with a ₹2 Cr market cap and P/E of 16.72.
• Negative ROCE of -2.10% alongside 23.02% ROE hints reported profits may be non-operating or one-off.
• Zero sales growth and zero dividend mean no clear compounding engine.
• Promoter holding is not disclosed and FairStock score is INSUFFICIENT_DATA, raising transparency and governance risk.

AI Analysis

Let me begin with what every Graham investor checks first: does the price make sense? Here, at ₹7.70 against book value ₹7.33, the P/B is 1.05. That looks like a classic asset play. But as Buffett says, you get a bargain only when you can value the asset. I cannot. The 52-week range is ₹23.25 to ₹75.47, yet the stock trades at ₹7.70. That is either a massive fall or a data error; either way, I should not invest until I understand why. The reported ROE is 23.02%, but ROCE is minus 2.10%. This gap is a red flag: the equity return may not come from operations. Sales growth is zero. Profit growth of 1000% and a PEG of 0.02 are low-base illusions, not evidence of a durable franchise. Latest quarter shows sales of ₹3 crore and net profit of ₹1 crore. Annualise that and the numbers clash with a ₹2 crore market cap and a P/E of 16.72. Which figure is wrong? I don't know. There is no dividend, no promoter holding disclosed, no debt/equity detail, and the FairStock score says insufficient data. For a ₹2 crore microcap in other financial services, that is too much unknown. The only encouraging items are the near-book valuation and the recent positive profit. Graham would call this speculative. If the book value is solid, it may be an asset play; if not, the downside is severe. I would wait for audited financials, a proper explanation of the 52-week range, and proof that earnings are sustainable. Until then, this is in the too-hard pile.

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