Williamson Magor (WILLAMAGOR)

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

Key Financials

Strengths

• Market cap of ₹31 Cr is drastically low compared to the latest quarter's net profit of ₹23 Cr, hinting at possible undervaluation if that profit is sustainable.
• Piotroski F-Score of 6/9 suggests some recent improvements in operational and financial health.
• Promoter holding of 62.01% indicates that promoter interests are significantly tied to the company's performance.
• The nominal P/E of 1.84 catches the eye, appearing attractive on a trailing earnings basis.

Concerns

• Negative book value of -₹165.24 per share means liabilities exceed assets, leaving no asset-backing margin of safety.
• Sales are negligible at ₹1 Cr for the latest quarter with zero growth; the ₹23 Cr profit is likely from non-operating or one-off items.
• ROE at -6.83% and ROCE at -52.89% show severely poor returns on shareholder capital and invested capital.
• Zero dividend and zero growth indicate no income or compounding engine for minority shareholders.

AI Analysis

Friends, when I look at Williamson Magor, I see a chessboard where I can't see half the pieces. It calls itself an investment company, yet its book value is -₹165.24 per share. That means each share has no net tangible assets behind it; on paper, liabilities exceed assets by a wide margin. A market cap of ₹31 Cr and a P/E of 1.84 look cheap at first blush, but cheapness for a business with zero sales growth and negative equity is often a value trap, not an opportunity. The latest quarter shows a net profit of ₹23 Cr on just ₹1 Cr of sales. Where does such profit come from? Likely investment gains or one-off items, not from durable business operations. ROE is -6.83% and ROCE -52.89%, which tells me the operating engine is not earning a viable return. With a Piotroski score of 6/9, there are some improving signs, but a score cannot repair a broken balance sheet. I am also concerned about the zero dividend and zero growth. Promoter holding of 62.01% could mean aligned interests, but it also leaves minority shareholders at a disadvantage if related-party transactions occur. In Benjamin Graham's world, I need a margin of safety: a positive book value, stable earnings, and a clear business model. Here I have none of that. The PEG of 0.01 is meaningless when growth is zero. This is not a stalwart or a fast grower; it's a speculative asset play. I would demand a huge discount and examine the underlying investment portfolio before putting any money to work.

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