Tirupati Foam (540904)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Tirupati Foam is not the kind of business that would make my heart race. At ₹108.90, the market cap is just ₹48 Cr, so this is a genuinely small enterprise. For a value investor, the first question is simple: what am I getting for my money? Book value is ₹64.04, so the price-to-book is 1.70. That is not a distressed-asset bargain; it is a modest premium to the accounting value of the business. The P/E of 15.85 looks reasonable on the surface, but the denominator is shrinking: sales fell 18.83% and profit fell 26.67%. The latest quarter tells a harsher story: ₹25 Cr of sales and ₹0 Cr of net profit. A business earning nothing is not an investment; it is a stalled car. Returns are far below what I expect: ROE is just 6.69% and ROCE is 9.54%. The Piotroski F-Score of 3 out of 9 raises serious red flags about financial health and the near-term trajectory. A dividend yield of 1.37% is little compensation while waiting for a turnaround. Some might call this cheap because of the book value and small cap, but in Graham's language, price is what you pay, value is what you get. Here, the value depends heavily on hope that sales stabilise and margins return. Without a durable moat, improving returns, and evidence of recovery, I cannot wear the low P/E badge alone. This belongs on the watchlist, not in my portfolio.

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