KSR Footwear (KSR)

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

Key Financials

Strengths

• Trades at ₹35.87 against book value of ₹40.33, a P/B of 0.89 offering a margin of safety on stated assets
• Promoter holding of 60.67% aligns promoter interests with minority shareholders
• Debt/equity of 0.44 is moderate and not excessive for a trading business
• Business model is simple and understandable: trading and distribution

Concerns

• Latest quarter shows a net loss of ₹4 Cr on sales of ₹45 Cr, indicating no current earnings power
• Sales declined 9.55%, pointing to a shrinking top line and weak demand
• ROCE is 0.00% and ROE is unavailable, meaning capital is not generating productive returns
• No dividend; total return depends entirely on capital appreciation in a low-return business

AI Analysis

Whenever I look at a stock, I ask whether it is a wonderful business at a fair price, or a fair business at a wonderful price. KSR Footwear is definitely the latter, if anything. This is a trading and distribution firm, and that by itself tells me the moat is thin. There is no pricing power and no brand franchise in the conventional sense. The financials reinforce my caution. The latest quarter recorded sales of ₹45 Cr but a net loss of ₹4 Cr. Sales have declined 9.55% over the year. ROE is not available and ROCE is zero; equity is not earning a return. A P/E of 0.00 is meaningless when profits are absent. The one number that attracts me is book value of ₹40.33 per share against a market price of ₹35.87, a modest 11% discount. With market cap of ₹55 Cr, the entire company is valued below stated book. Debt/equity of 0.44 is manageable. Promoter holding of 60.67% is a positive sign. The Piotroski score of 5/9 tells me financial health is only average. The reported profit growth of 35.16% deserves no applause; it comes off an unreliable base and is contradicted by the current loss. In Graham's language, this is not a growth story. It is an asset play with no evidence of earnings power. For a retail investor, buying below book in a weak business is risky, because the book can shrink. I would wait for a consistent return to profitability, positive cash flow, and stable sales before calling it a bargain. A wonderful price, if it exists, requires a wider gap than this.

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