Kalpat. (KALPATARU)

FairStock Score: 9/100 — RISKY

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

Key Financials

Strengths

• Promoter holding is high at 81.34%, aligning owner and minority interests.
• Book value of ₹190.10 per share provides a positive, albeit thin, asset base.
• Latest quarter sales of ₹505 Cr shows the company retains meaningful operating scale.

Concerns

• No earnings: latest quarterly net loss of ₹67 Cr and profit growth at -158.70%; P/E of 0.00 is of no use.
• High leverage: debt/equity is 2.26 and ROCE is only 1.06%, so returns are far below any reasonable cost of capital.
• Declining top line: sales growth is -14.13% and there is no dividend yield to compensate investors.
• Weak fundamental health: Piotroski F-Score is 3/9 and FairStock Score is 0/100, both pointing to high risk.

AI Analysis

Reading Kalpataru through Graham's lens, the first thing I notice is that I cannot value this company on earnings because there are none. With a latest quarterly net loss of ₹67 Cr and profit growth of -158.70%, the P/E is meaningless at 0.00. A share is not cheap merely because it trades at ₹325.90 against a book value of ₹190.10. That P/B of 1.71 means the market is asking me to pay a premium for assets that generated an ROCE of just 1.06% — far below any acceptable return. Worse, debt/equity is 2.26. In a residential and commercial project business, such leverage can turn a downturn into permanent impairment. Sales are already contracting at -14.13%, so the operating environment is not kind. The Piotroski F-Score of 3/9 and the FairStock Score of 0/100 tell me the financial health is weak. I do not ignore such signals. Promoter holding of 81.34% is a positive: owners have a large stake, and their interests are aligned with mine. But even honest, committed promoters cannot rescue a business that earns no return on capital and carries excessive debt. There is no dividend yield, so the only possible return is capital appreciation, which depends on a turnaround. Benjamin Graham would demand a margin of safety; I do not see one at 1.71 times book with negative earnings. This is not a stalwart or a grower. It is a turnaround candidate, and only if management can stabilise sales, shrink debt, and restore profitability would I revisit. Until then, my answer is clear: this is too risky for a value investor.

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