Dhanashree Elect (542679)

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

Key Financials

Strengths

• Still profitable at the net level in the latest quarter: ₹1 Cr profit on ₹18 Cr sales
• ROE of 10.07% and ROCE of 11.78% indicate some capital efficiency despite the downturn
• Book value per share of ₹29.54 provides a modest asset backing
• Sales of ₹18 Cr per quarter imply an annualized revenue base of ~₹72 Cr, giving the company a going-concern presence

Concerns

• Sales down 28.76% and profit down 31.73% year over year – a severe business contraction
• P/E of 64.52 is expensive for a company with declining earnings
• Piotroski F-score of 3/9 signals weak financial health and possible operational distress
• Current price ₹65.10 is far below the 52-week low of ₹137.55, indicating extreme negative momentum or a likely data anomaly

AI Analysis

As I look at Dhanashree Elect, I see a company in distress. The current price is ₹65.10, which gives it a market capitalization of ₹96 crore. In its latest quarter, it managed sales of ₹18 crore and a net profit of ₹1 crore. That is a slim margin, but at least it is not losing money. However, the trend is troubling: sales have fallen by 28.76% and profits by 31.73% year over year. A business that is shrinking this quickly demands a very low valuation, yet the P/E ratio stands at 64.52. That is the market paying a premium for earnings that are heading in the wrong direction. The return on equity is 10.07% and ROCE is 11.78% - acceptable numbers, but they will likely erode if the top line keeps falling. The Piotroski F-score of 3 out of 9 is a warning light. It tells me the financial health is weak, with poor profitability, leverage, and operating efficiency. Book value is ₹29.54 per share, so at 2.2 times book, Mr. Market is not offering me a bargain. The dividend yield is a token 0.06%. What really catches my eye is the share price sitting at ₹65.10, far below the 52-week low of ₹137.55. That is unusual and suggests either a catastrophic collapse in the business or a possible error in the data. Either way, it is not a comfortable situation. As Benjamin Graham taught, a good investment requires a margin of safety measured by tangible assets and earnings power. Here, the asset base is modest and earnings are falling. Without a clear moat or a visible path to growth, this is not a business I would want to own. I would need to see a strong turnaround in orders and cash flow before reconsidering.

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