Dharan Infra-EPC (DHARAN)

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

Key Financials

Strengths

• Low debt/equity of 0.07 limits balance sheet and insolvency risk.
• P/B of 0.13 offers a large discount to stated book value of ₹1.45 per share.
• Profit growth of 45.75% indicates the annual loss has narrowed.
• Piotroski F-Score of 5/9 suggests some financial signals are not entirely negative.
• No dividend obligation at 0.00% yield preserves cash.

Concerns

• Sales growth of -98.82% and latest quarter sales of ₹0 crore mean revenue has essentially disappeared.
• Promoter holding of only 0.83% shows almost no insider alignment with minority shareholders.
• ROE of -3.59% and ROCE of -3.61% reflect ongoing capital destruction.
• Latest quarter net loss of ₹8 crore continues despite the narrowed annual loss.

AI Analysis

Let us apply simple tests. Dharan Infra-EPC trades at ₹0.19 against a stated book value of ₹1.45 per share, a P/B of 0.13. That looks like a Graham-style cigar butt. But a discount to book is only meaningful if the book value is real and the business has some earning power. Here, the latest quarter shows sales of ₹0 crore and a net loss of ₹8 crore. Sales growth has collapsed by 98.82%; this is not a stumble, it is a shutdown of revenue. ROE and ROCE are both negative, so the company is destroying value. The positive profit growth of 45.75% only means the loss narrowed; it is still bleeding. Promoter holding is just 0.83%, which tells me those closest to the company have almost no money at stake. That is a major warning sign. On the positive side, debt-to-equity is only 0.07, so the balance sheet is not burdened by leverage, and the Piotroski F-Score of 5/9 shows some mixed signs of financial health. But with zero revenue and negative earnings, I cannot calculate intrinsic value through earnings power. This would only be interesting if I could verify every asset on the balance sheet and see a credible plan to restart operations. At ₹0.19, the market is pricing in deep distress. As Graham said, price is what you pay, value is what you get. Without a moat, cash flow, or promoter conviction, this is a speculative asset play, not an investment.

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