Chiraharit (544561)

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

Key Financials

Strengths

• Latest quarter sales of ₹20 Cr show the company still has an operating base.
• ROCE of 38.76% suggests efficient use of capital, if the reported figures are reliable.
• Net loss of only ₹1 Cr in the latest quarter means it is not burning cash at an alarming rate.
• Small market cap of ₹42 Cr leaves potential for a niche player to survive a sector downturn.

Concerns

• Sales declined 40.21% year-on-year, indicating significant demand shrinkage.
• Profit growth of -131.03% has pushed the company into losses; the P/E of 46.12 is not meaningful.
• Piotroski F-Score of 3/9 signals weak financial health.
• Critical data is unavailable: book value, debt/equity, promoter holding, and fair value score; transparency is insufficient.

AI Analysis

Let's start with what I know: Chiraharit is a civil construction company with a market cap of just ₹42 Cr and a price of ₹7.66. In the latest quarter it managed sales of ₹20 Cr, but lost ₹1 Cr. Over the year, sales fell 40.21% and profits swung down 131.03%. This is not the kind of economics I look for. A P/E of 46.12 is meaningless when earnings are eroding; a Piotroski F-Score of 3 out of 9 tells me the balance sheet and operations are deteriorating, not strengthening. The high ROCE of 38.76% looks good at first, but with no book value, no debt-equity data, and no promoter holding disclosed, I cannot trust the quality of that number. In construction, revenue can be lumpy, but a 40% sales drop is more than lumpiness; it suggests a loss of pricing power, project delays, or weaker demand. The company has no dividend yield, so as a minority shareholder I am reliant entirely on business performance and capital appreciation. That is a fragile position, especially when net profit is negative. Graham would say price is what you pay, value is what you get. At ₹7.66, I do not see evidence of underlying value; I see a cyclical business in a downcycle with insufficient disclosures. This may one day turn around, but I prefer to wait until the numbers show consistent improvement in sales and profits, and until the company provides full financial transparency. For now, this is a pass.

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