Bajaj Hindusthan (BAJAJHIND)

FairStock Score: 23/100 — RISKY

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

Key Financials

Strengths

• Price-to-book of 0.55 means the market cap is roughly 45% below reported book value of ₹35.74 per share.
• Latest quarter is profitable: net profit of ₹15 Cr on sales of ₹1,380 Cr, indicating some operating traction.
• Piotroski F-Score of 6/9 shows modest fundamental improvement across profitability, leverage, and efficiency metrics.
• Debt/equity of 0.87 is moderate for a capital-intensive sugar business, not dangerously overleveraged.

Concerns

• ROE is -0.72% and ROCE is just 1.15%, showing poor returns on capital and limited earnings power.
• Sales declined 6.46%, so the business is shrinking at the top line.
• P/E of 0.00 and profit growth of 114.57% are misleading because earnings are near zero; latest-quarter net margin is only about 1%.
• Promoter holding of 24.95% is low, and there is no dividend for minority shareholders.

AI Analysis

At ₹19.72, Bajaj Hindusthan offers a classic Graham-style bargain on the surface: the market cap of ₹2,064 Cr is barely half the book value of ₹35.74 per share, so I am being asked to pay 55 paise for each rupee of net assets. But a low price-to-book is only a starting point; the business must eventually create value. Here the numbers are sobering. ROE is -0.72% and ROCE is just 1.15%, meaning the large asset base is earning almost nothing after debt costs. Debt/equity of 0.87 is not disastrous, but combined with a latest-quarter net profit of ₹15 Cr on sales of ₹1,380 Cr — roughly a 1% net margin — this is a capital-intensive commodity business with negligible pricing power. Sales fell 6.46%, so the top line is shrinking. The 114.57% profit growth looks impressive until I notice it is climbing off a base of near zero. Piotroski F-score of 6/9 hints at some operational improvement, but it is not a clean 9. Promoter holding of 24.95% is low for an Indian promoter-led company; I like owners who eat their own cooking. There is no dividend, so minority shareholders wait for price appreciation. Ultimately this is an asset play, not a franchise. The margin of safety depends on whether the book value is real and whether the sugar/ethanol cycle turns. If management can convert that book value into higher returns and deleverage, the stock could re-rate; if not, the market's discount may be justified. I would keep it on a watchlist, not buy yet.

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