SecureKloud Tech (SECURKLOUD)

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

Key Financials

Strengths

• Trading at ₹23.04 below book value of ₹24.78 (P/B 0.93) offers a stated margin of safety.
• Promoter holding at 43.52% provides alignment with minority shareholders.
• Profit growth of 70.24% suggests the loss-making trend may be moderating year-on-year.
• Piotroski F-Score of 5/9 indicates mixed, but not extremely distressed, fundamentals.

Concerns

• Sales declined sharply by 65.6%, indicating a major loss of business.
• ROE of -170.93% and ROCE of -17.55% show capital is being destroyed.
• Latest quarter still posted a ₹2 Cr net loss on only ₹10 Cr revenue.
• No dividend, no P/E, and no clear debt/equity data make the balance sheet hard to underwrite.

AI Analysis

Let me start with the one number that jumps out: return on equity of -170.93%. Benjamin Graham said the stock market is a voting machine in the short run and a weighing machine in the long run. Right now, this machine doesn't weigh much. SecureKloud is trading at ₹23.04, slightly below book value of ₹24.78, so on a pure asset basis it looks cheap. But cheapness without earning power is the classic value trap. Sales have collapsed by 65.6%. The latest quarter still generated only ₹10 Cr in sales and a net loss of ₹2 Cr. The P/E is zero because there are no positive earnings to put in the denominator. A 70% profit growth figure sounds hopeful, but when the starting point is a loss, that is just a smaller loss, not genuine growth. Return on capital employed is -17.55%, meaning every rupee put into this business is being destroyed. The Piotroski score of 5/9 is mediocre; it doesn't give me confidence that the balance sheet is healing. Promoter holding of 43.52% is good to see, but alignment doesn't save a bad business model. There's no dividend, and no moat that I can identify. In IT-enabled services, customers leave when value proposition weakens, and a 65.6% revenue decline is evidence someone is walking away. Would I buy it as an asset play? Only if I could independently verify asset quality and liquidation value. I can't from these numbers. Book value can evaporate when a company keeps losing money. A true Graham purchase requires margin of safety in net assets plus a realistic chance of earning a normal return. SecureKloud doesn't appear to have that. I'd wait for revenue stabilisation, positive quarterly results, and evidence that the decline has stopped. Price alone is not an invitation.

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