Vishwaraj Sugar (VISHWARAJ)

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

Key Financials

Strengths

• P/B of 0.45: price is a 55% discount to stated book value of ₹14.07.
• Latest quarter sales of ₹78 Cr show the business still has operating scale despite losses.
• ROCE is positive at 0.49%, albeit very low, indicating some operating capital is being recovered.
• Market cap of ₹128 Cr is small, so a meaningful asset or margin improvement could have a high-percentage impact.

Concerns

• Negative ROE of -12.68% and latest quarterly net loss of ₹7 Cr are eroding shareholder equity.
• Profit growth of -1165% and sales growth of -16.65% show clear deterioration.
• Debt/equity of 1.46 and zero dividend raise financial flexibility concerns.
• Piotroski F-score of 3/9 and low promoter holding of 29.05% point to weak fundamentals and alignment risk.

AI Analysis

At ₹6.38, Vishwaraj Sugar trades at 0.45 times book value — that’s a 55% discount to a stated book value of ₹14.07. On the surface, this is a classic Graham asset play. But a cheap stock is not always a good investment. The business is losing money: latest quarter sales were ₹78 crore, and net profit was minus ₹7 crore. ROE is -12.68%, profit growth is -1165%, and with no earnings the P/E is not a valuation — it’s an absence. ROCE of 0.49% tells me capital is barely earning anything. Add debt/equity of 1.46, and the lenders are ahead of me in line. The Piotroski F-score of 3/9 confirms poor financial health. Sales are shrinking -16.65%, there is no dividend, and promoter holding is only 29.05% — low for a small-cap. I want owners with a big personal position, not a minority stake. The 52-week range of ₹4.14-₹10.20 shows disturbance; the stock has fallen from ₹10.20 and is now ₹6.38, which can look like value but can also be a value trap. In sugar, a commodity business, there is no pricing power and no moat that I can see in these figures. Would I buy the whole company for ₹128 crore? Only if the rupee book value is trustworthy and earning power returns. Until then, book value may erode as losses continue. Graham would say the margin of safety must be measured by realisable assets and earning power, not just a P/B ratio. This is something to watch after a visible turnaround, not to chase today. Price is what you pay; value is what you get. Here, the value is unproven.

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