Kabra Extrusion (KABRAEXTRU)

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

Key Financials

Strengths

• Promoter holding is high at 60.50%, indicating meaningful insider ownership and alignment.
• Debt/equity of 0.32 is moderate, so the balance sheet is not excessively leveraged.
• Book value of ₹131.41 provides a tangible asset base against the current market price.
• Quarterly sales of ₹110 Cr show the business still has an operating franchise despite the downturn.

Concerns

• Latest quarter posted a net loss of ₹5 Cr, and profit growth was -170.74%; earnings are clearly negative.
• Sales declined 8.94%, showing a shrinking top line in a challenging industrial environment.
• Extremely low ROE of 0.36% and Piotroski F-Score of 3/9 signal poor financial health and rising stress.
• At ₹249.35, the stock trades at 1.90 times book with negative earnings; there is no earnings-based margin of safety.

AI Analysis

Let me start with a confession: when I see a P/E of 0.00, I don't see a bargain; I see zero earnings. Kabra Extrusion currently fails my first test of investability. Quarterly sales of ₹110 Cr produced a ₹5 Cr loss; profits are down 170.74% while sales fell 8.94%. This is not a wealth-compounding machine. Return on equity is 0.36%, and ROCE is only 7.12%—barely a fraction of what a shareholder could earn elsewhere. The balance sheet is not reckless: debt/equity is 0.32, and promoters own 60.5%, which tells me ownership is aligned. But alignment cannot overcome a business that is shrinking and losing money. Book value is ₹131.41, and the stock trades at ₹249.35, so I am paying 1.9 times book for a business whose earnings are negative and Piotroski F-Score is 3 out of 9. That is no margin of safety; it is a price requiring confidence. The 52-week range tells a cyclical story: from ₹521 to ₹180, now ₹249. The market has already repriced this industrial products name, but I am not interested in a falling knife. In Graham's language, the figures must promise safety of principal and adequate return. Here they promise neither. I would place Kabra in the pass pile until sales stabilize, margins turn positive, and capital returns exceed the cost of capital. No matter how much the price has fallen, the value must lead.

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