Escorp Asset Mgt (540455)
TurnaroundScore breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹71.44 |
| Market Cap | ₹79.42 Cr |
| P/E Ratio | 27.34 |
| ROCE | 32.96% |
| ROE | 5.73% |
| Dividend Yield | 0% |
| Profit Growth | -88.47% |
| Debt/Equity | — |
| Sales Growth | -90.13% |
| 52-Week Range | ₹95.5 — ₹212.95 |
| Sector | Finance |
| Book Value | ₹52.45 |
Strengths
- ROCE of 32.96% suggests historically efficient use of capital employed.
- Book value of ₹52.45 provides a measurable asset floor, with P/B at 1.36.
- Latest quarter of ₹1 Cr sales and ₹1 Cr profit confirms the business is still operating, not a shell.
- Trading at a relatively modest P/B multiple of 1.36, not far from book value.
Concerns
- Sales and profit collapsed by over 88-90%, indicating severe business deterioration.
- Piotroski F-Score of 3/9 points to weak financial health across profitability, leverage, and efficiency.
- P/E of 27.34 is expensive given negative growth and zero dividend yield.
- Promoter holding is not disclosed, creating transparency and governance uncertainty.
AI Analysis
Let me look at Escorp Asset Mgt through the lens of Graham and Buffett. The first thing that hits me is the collapse: sales down 90.13% and profit down 88.47%. That is not a slow fade; that is a business that has lost its way. At a P/E of 27.34, I am paying a high multiple for shrinking earnings. Book value of ₹52.45 gives some anchor, but at ₹71.44, I am paying 1.36 times book — a 36% premium over asset value for a company whose return on equity is just 5.73%. That is roughly bank deposit territory, but with far more risk. The Piotroski F-score of 3 out of 9 is a red flag, indicating poor financial health across multiple metrics. Yes, ROCE is 32.96%, which looks attractive, but it is meaningless when sales and profits have evaporated. The latest quarter shows only ₹1 Cr of sales and ₹1 Cr of profit — the engine is barely running. No dividend, zero yield, and the stock trading near ₹71.44 versus a 52-week high of ₹212.95 tells me the market has repriced expectations. But repricing alone doesn't create value. As Buffett says, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' This is a possible turnaround, but I need evidence of stabilization — several quarters of sequential sales growth and margin recovery — before I even consider putting a rupee to work. Right now, the odds are not in my favor.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer