EKI Energy (543284)

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

Key Financials

Strengths

• Book value of ₹158.38 per share provides a measurable asset base, though price is 2.22 times book.
• Dividend yield of 2.10% suggests some shareholder reward policy still exists despite weak earnings.
• Reported ROE and ROCE are slightly positive at 0.72% and 0.80%, avoiding a deeply negative book return.
• Latest quarter sales of ₹17 Cr provide a small base from which a recovery could potentially be built.

Concerns

• Sales growth is down 75.14% and profit growth is down 272.34%, indicating severe business deterioration.
• Latest quarter net loss of ₹5 Cr on ₹17 Cr revenue means the company is burning money at the operating line.
• P/E is meaningless or zero because earnings are absent, leaving valuation unsupported by current profitability.
• Piotroski F-Score of 3/9 and FairStock Score of 0/100 highlight weak financial health and high risk.

AI Analysis

Price is ₹351.70, and the market capitalisation is ₹971 Cr. Book value is ₹158.38 per share, so I would be paying 2.22 times net assets. In Graham's view, paying a premium for book value is acceptable only if the business can earn good returns on those assets. Here, the reported ROE is 0.72% and ROCE is 0.80%. That is barely breathing, not thriving. The latest quarter shows sales of ₹17 Cr and a net loss of ₹5 Cr. Sales growth has collapsed by 75.14%, and profit growth has turned to minus 272.34%. The FairStock Score is 0/100, and the Piotroski F-Score is 3 out of 9. These are not the numbers of a compounding machine; they are the numbers of a business in distress. The P/E is meaningless because earnings are absent. A dividend yield of 2.10% is pleasant, but with losses I must question whether it is safe. The stock is at the high end of its 52-week range of ₹60 to ₹351.70. Mr. Market seems enthusiastic, but I need evidence, not enthusiasm. A consulting business without a clear moat and with this level of revenue collapse does not offer a margin of safety. This could eventually be a turnaround, but a turnaround must be proven through stable sales and restored profits. I will not project a recovery; I will demand one. Until I see clear signs of stabilisation and a credible path to earnings, I would rather be early than wrong. In value investing, sometimes inaction is the wisest action.

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