G K P Printing (542666)

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

Key Financials

Strengths

• Shares trade at a P/B of 0.92, below book value of ₹10.36, providing some asset cushion.
• ROCE of 4.87% and ROE of 3.25%, while low, are positive rather than loss-making.
• Latest quarter sales of ₹7 Cr shows the business is still operating and generating revenue.
• Current price of ₹9.52 is near the upper end of the 52-week range, suggesting some market interest.

Concerns

• Sales fell 16.17% and profit fell 45.45%; latest quarterly net profit is ₹0 Cr.
• Piotroski F-score of 3/9 indicates weak financial health and poor earnings quality.
• ROE of 3.25% and ROCE of 4.87% are far too low to create value for shareholders.
• No dividend yield, and promoter holding/debt-equity data is unavailable, making assessment difficult.

AI Analysis

Let me evaluate G K P Printing the way I would any small Indian packaging business. Price is ₹9.52, market cap is only ₹21 Cr, and book value is ₹10.36. Buying a rupee of assets for 92 paise is interesting, so the P/B of 0.92 gives me a possible margin of safety. But Graham always warned me: a cheap asset is only worth something if it can earn a return. Here the return is thin. ROE is 3.25% and ROCE is only 4.87%. That is below what I expect from a business with pricing power. The profit record makes matters worse: sales declined by 16.17%, profit fell by 45.45%, and the latest quarter shows net profit of ₹0 Cr on sales of ₹7 Cr. A company producing zero profit cannot support a long-term investment case. The P/E of 18.67 looks expensive when earnings are falling, not cheap. The Piotroski score of 3 out of 9 is a warning bell; it tells me cash flow, margins, and balance-sheet quality are weak. There is no dividend yield to pay me while I wait, and promoter holding and debt/equity are not disclosed. In this low-information situation, I cannot place much trust in management. Packaging is a competitive, low-moat industry; the numbers do not show any special advantage. The stock's price is near its 52-week high of ₹10.36, but price strength without earnings strength is not value. Would I invest? Only if I saw a real turnaround: positive quarterly profit, sales growth returning, higher returns on capital, and a stronger F-score. Until then, this looks like an asset play with weak operations, not a compounder. Mr. Market is offering a discount to book, but I am not paid enough to ignore the deteriorating earnings.

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