Kesoram Inds. (KESORAMIND)

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

Key Financials

Strengths

• Latest quarter shows a small profit: ₹6 Cr net profit on ₹65 Cr sales, a ~9% net margin.
• Debt/Equity of 0.58 is moderate, not excessively leveraged.
• Promoter holding at 43.34% provides some alignment with minority shareholders.
• Book value of ₹7.47 and price of ₹10.53 imply asset support, though not at a discount.

Concerns

• ROCE of -4.71% means the business is not earning its cost of capital.
• Trailing P/E of 0.00 and 132.82% profit growth signal a low/negative base, not proven earning power.
• Sales declined 1.07%, showing no topline momentum.
• Zero dividend means shareholders depend solely on speculative price upside.

AI Analysis

At ₹10.53, this is not the kind of business I would normally spend a minute on. Cement is a commodity, and Kesoram has no obvious moat. The price-to-book of 1.41 means I am paying a premium to the ₹7.47 book value, not getting a margin of safety. The trailing P/E of 0.00 is meaningless because earnings are absent. Indeed, ROCE is -4.71%, so existing capital is not even earning its keep. Why would I want to compound into a business that destroys value? True, the latest quarter shows ₹6 crore net profit on ₹65 crore sales — roughly a 9% margin — and profit growth of 132.82% sounds exciting, but from a low or negative base, percentages deceive. Sales are down 1.07%; there is no underlying growth. Debt/equity of 0.58 is serviceable, not frightening, and promoter holding at 43.34% shows some alignment. But no dividend means the only return is price appreciation, which depends on a genuine turnaround. The Piotroski score of 5/9 is mediocre, not a green light. I need evidence that ROCE turns positive and stays positive. If the company can keep earning ₹6 crore per quarter with stable cement pricing and pay down debt, perhaps it becomes an asset-backed turnaround. But today, buying at 1.41 times book with negative return on capital is speculation, not investment. In Graham's terms, there is no adequate margin of safety. I will wait for either a cheaper price, preferably below book, or several quarters of improving returns before committing capital.

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