Kaya Ltd (KAYA)

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

Key Financials

Strengths

• Promoter holding is 51.43%, aligning management with minority shareholders.
• Sales grew 3.30%, showing modest revenue stability despite severe losses.
• Price is near the lower end of its 52-week range, suggesting expectations may already be low.

Concerns

• Negative book value of ₹-64.94 means liabilities exceed assets, leaving no equity cushion for shareholders.
• Latest quarter net loss of ₹36 Cr on ₹60 Cr sales implies an annualised loss that is very large relative to the ₹492 Cr market cap.
• Piotroski F-Score of 3/9 and ROCE of -2.50% point to poor operating health and capital inefficiency.
• Profit growth at -166.87% and zero dividend provide no investment return while waiting for a recovery.

AI Analysis

Let me be blunt: Kaya fails every test I would apply. A company with negative book value of ₹-64.94 per share means the balance sheet is upside down; creditors own the equity, not shareholders. The latest quarter shows ₹60 Cr in sales but a net loss of ₹36 Cr. That is not a temporary blip. Profit growth of -166.87% and ROCE of -2.50% tell me capital is being destroyed. The P/E is meaningless because there are no positive earnings. The 62.66% ROE is an accounting illusion created by negative equity; I do not cheer a return calculated on a negative denominator. The Piotroski F-Score of 3/9 confirms weak financial health. Sales growth of just 3.30% does not justify a ₹492 Cr market cap, roughly 2 times annualised sales, for a business bleeding cash. There is no dividend to compensate while waiting. Promoter holding at 51.43% is positive for alignment, but even a high promoter stake cannot offset negative net worth and mounting losses. Graham would insist on a margin of safety; here there is none. Book value is negative, earnings are negative, and the balance sheet offers no cushion. This is not an investment; it is a speculation on a turnaround. The stock has already fallen from ₹487.90 to ₹268.50, but a lower price does not automatically make it cheap. Price is what you pay, value is what you get. I see no value until Kaya demonstrates it can cut losses, conserve cash, and return to positive book value and profits. I will watch from the sidelines.

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