Niraj Ispat Ind. (NIRAJISPAT)

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

Key Financials

Strengths

• Low P/E of 11.16, suggesting an inexpensive entry on reported earnings
• Positive ROCE of 10.75%, indicating some capital efficiency
• High promoter holding of 74.44%, aligning ownership with minority shareholders
• Micro-cap size may offer niche upside if demand revives

Concerns

• Zero sales growth and -2.44% profit decline, showing stagnation
• Latest quarter net profit of ₹0 crore, implying very weak current earnings power
• Piotroski F-Score of 3/9, indicating poor financial health
• No dividend and no disclosed book value/ROE, limiting fundamental analysis

AI Analysis

A ₹17 crore market cap micro-cap in plastic consumer products. At ₹247, the stock trades at 11.16 times earnings, which seems cheap at first glance. But Graham taught us to value a business on evidence, not optimism. Sales growth is exactly zero, and profit has declined 2.44%. The latest quarter shows sales of just ₹1 crore and net profit of ₹0 crore — rounding to zero. That is not a compounding machine. ROCE is 10.75%, acceptable, but with no dividend and no visible balance sheet data, I cannot judge the real return on equity. The Piotroski F-Score of 3/9 is a red flag: it signals weak financial health and poor operational efficiency. A score of 3 out of 9 would make me suspicious rather than confident. The high promoter holding of 74.44% is a positive — their interests are aligned with minority shareholders. But the stock has swung from ₹155 to ₹485.75 in 52 weeks, which is too volatile for a stable, frugal business. At current price it is about half the upper range. That may lure a bargain hunter, but a low P/E is not meaningful if earnings are flat and quarterly profit is zero. I would need to see years of consistent earnings, a healthy balance sheet, and a clear growth runway before treating this as a Graham bargain. It may be a slow grower at best, or a cyclical facing weak demand. For now, I will stay on the sidelines. There is no margin of safety when the business itself is not proving its earning power.

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