Heranba Inds (HERANBA)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering Heranba at ₹169.76, below its stated book value of ₹190.36, so P/B 0.89. That catches a Graham eye. But cheapness alone isn't value. The business is currently losing money: latest quarter sales ₹301 Cr and net loss ₹23 Cr; ROE -9.58%; profit growth -57.04%; sales growth -26.86%. P/E is 0.00 because earnings are negative. So the apparent discount to book is not a margin of safety unless assets are real and earning power returns. Quality and moat? Pesticides and agrochemicals are competitive, and ROCE 4.39% tells me capital is not working hard. A moat usually shows up as durable high returns; here returns are poor. Debt/equity 0.75 is not fatal but with losses it becomes a risk. Promoter holding 74.94% aligns interests, but high concentration can also mean limited float. Dividend yield 0.59% is token. Growth: 5yr revenue CAGR 7.57% is modest; recent sales down 26.86% and profits down 57.04% show severe pressure. Piotroski F-score 3/9 and FairStock 0/100 confirm financial weakness. At ₹679 Cr market cap, the market is pricing trouble. If I were Buffett, I'd want evidence of stable margins, debt reduction, and positive cash generation. If Graham, I'd demand a larger discount and multiple years of earnings. Today this is a speculative turnaround, not a stalwart. I'd watch quarterly profit turning positive, sales stabilization, ROCE improving from 4.39%, and debt/equity falling. Without that, the low P/B is a value trap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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