Kaushalya Infra. (KAUSHALYA)

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

Key Financials

Strengths

• Price ₹901 is 37% below book value of ₹1,427.25 per share, offering a stated margin of safety.
• Promoter holding at 51.42% aligns control with minority shareholders.
• P/B of 0.63 suggests the market is pricing in asset discounts rather than growth optimism.
• Current price is closer to the 52-week low of ₹750 than the high of ₹1,841.90, reducing speculative froth.

Concerns

• ROE of only 1.88% and ROCE of 6.33% show weak returns on the company's asset base.
• Latest quarter sales and net profit are both just ₹1 Cr, with 0% growth; P/E of 22.35 is expensive relative to earnings power.
• Piotroski F-Score of 4/9 signals fragile financial health.
• No dividend yield and negligible profitability mean shareholders get little current return while waiting.

AI Analysis

At ₹901, Kaushalya Infra trades at roughly 0.63 times book value, while book value stands at ₹1,427.25 per share. That is the kind of margin of safety Graham would notice. But a cheap price is only part of the story; the business itself earns very little. ROE is just 1.88% and ROCE 6.33%, meaning the assets are not being deployed to generate attractive returns. The latest quarter shows sales of ₹1 Cr and net profit of ₹1 Cr; annualized, the stock is at 22.35 times earnings, hardly a bargain on income power. There is zero growth in sales and profit, no dividend, and a Piotroski F-score of 4/9, indicating mediocre financial health. The company is in hotels and resorts, a capital-heavy, cyclical sector. With promoter holding at 51.42%, interests are somewhat aligned, but the market cap of ₹31 Cr and tiny operations make this a micro-cap where minority investors need patience. The core question is whether the underlying properties hold hidden worth beyond the income statement. If assets are truly worth more than the market price and can be sold, developed, or monetised, the discount may narrow. If not, the low ROE could persist, and book value may slowly erode. I would not confuse a low price with a great business. This is an asset play, with value depending on capital allocation and asset discipline, not on earnings growth.

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