Heranba Inds (HERANBA)

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

Key Financials

Strengths

• Trades below book value: P/B 0.93, price ₹218.15 vs book value ₹234.69
• High promoter holding of 74.94% aligns promoter and minority interests
• Latest quarter still generated ₹301 Cr of sales, giving the company an operating base
• Positive dividend yield of 0.48% despite weak profitability shows some shareholder return intent

Concerns

• Latest quarter net loss of ₹23 Cr; profit growth -128.16%, making P/E meaningless
• Weak returns: ROE 6.18% and ROCE 4.39%, below acceptable cost of capital, with D/E of 0.60
• Piotroski F-Score 3/9 and FairStock Score 0/100 indicate poor financial health
• Sales declining -11.70% and 52-week range ₹155.38-₹379.00 reflect a sharp downturn

AI Analysis

At ₹218.15, Heranba is not a wonderful business. It is a distressed agrochemical company trading at ₹0.93 for every ₹1 of book value, with book value at ₹234.69. That sounds like an asset play, and it is. But Graham taught me not to buy assets alone when earnings are deteriorating. Latest quarter: ₹301 Cr revenue and a ₹23 Cr loss. Profit growth is -128.16%, sales growth is -11.70%, and the Piotroski F-Score is only 3/9. These are not the numbers of a company finding its footing. The return on equity is 6.18%, ROCE is just 4.39%, and debt/equity is 0.60. With such low returns, the company is barely covering its cost of capital, and debt makes the risk worse. The promoter holding of 74.94% is a positive: owners have skin in the game. The dividend yield of 0.48% shows some willingness to return cash, but it is small comfort while the company is losing money. The P/E is zero because there is no meaningful profit to capitalise. Valuation can only be tested against assets: ₹234.69 of book value against a price of ₹218.15. That margin is thin, and it can erode if losses continue. This is not a Buffett-style compounder; there is no moat evidence in these numbers. It is a possible asset play with cyclical risk. I would not rush in. I would wait for a few quarters of improving margins, stable or falling debt, and positive operating cash flows. Until I see that, the 0/100 FairStock Score and 3/9 Piotroski score are enough warning to keep my capital disciplined. Price is cheap for a reason.

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