Kolte Patil Dev. (KOLTEPATIL)

FairStock Score: 29/100 — RISKY

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

Key Financials

Strengths

• Promoter holding at 73.81% is high and aligns management with minority shareholders.
• ROCE of 10.87% is meaningfully better than the current ROE, suggesting operations can generate returns if margins recover.
• Debt/equity of 0.86 is moderate for a real estate developer.
• Stock is about 30% below its 52-week high, reducing some of the optimism seen at the top.

Concerns

• P/E of 74.24 and P/B of 4.67 look expensive, especially while profit fell 82.21% and sales fell 24.12%.
• Latest quarter net profit of only ₹4 Cr on sales of ₹265 Cr shows razor-thin margins.
• Piotroski F-score of 3/9 signals weak financial health.
• Zero dividend, ROE of 3.47%, and FairStock Score of 0/100 indicate poor shareholder returns and high risk.

AI Analysis

Whenever I see a real estate company, I remind myself that land is not a moat and bricks do not compound. Kolte Patil Dev. currently sells at ₹390.65 with a market cap of ₹3,145 Cr. That is 4.67 times book value of ₹83.58 and 74.24 times trailing earnings. But those earnings are collapsing: profit is down 82.21% and sales are down 24.12%. In the latest quarter, sales were ₹265 Cr but net profit was only ₹4 Cr. That is roughly a 1.5% net margin. As Graham would say, price is what you pay, value is what you get. I do not see value here. Return on equity is 3.47%, far below what a quality business should earn, and even ROCE of 10.87% is mediocre. Debt/equity of 0.86 is not disastrous, but the Piotroski F-score of 3/9 tells me financial health is weak. With zero dividend, the shareholder depends entirely on price appreciation, and at this valuation, hope is not an investment strategy. Promoter holding of 73.81% is good, but high ownership does not replace profitability. This looks like a cyclical business under stress, not a franchise with pricing power. In real estate, today's cheap-looking P/E can become tomorrow's expensive one when earnings fall further. I would need evidence of sales recovering, margins rebuilding, and debt staying controlled before I could even consider a margin of safety. A FairStock score of 0/100 agrees. This is not a wonderful business at a fair price; it is a challenged business at an uncertain price. For the Indian retail investor, patience is better than a P/E of 74 in a downturn.

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