21st Cent. Mgmt. (21STCENMGM)

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

Key Financials

Strengths

• Price-to-book of 0.50: stock trades at ₹33.04 against book value ₹65.94, a significant stated asset cushion.
• Implied stated equity is roughly ₹76 crore against a ₹38 crore market cap, offering deep discount to book.
• Promoter holding at 64.43% aligns promoter interest with minority shareholders.
• Reported ROCE of 37.50% and no stated debt on the balance sheet suggest limited leverage-related distress.

Concerns

• Latest quarter revenue is negative at ₹-3 crore with a net loss of ₹-6 crore, indicating severe operational stress.
• ROE is -31.06%, with sales down -54.59% and profit down -72.09%, showing rapid business deterioration.
• Piotroski F-score of 3/9 signals weak financial health and elevated risk of continued value destruction.
• Zero dividend and negative earnings make the P/E meaningless and provide no income support.

AI Analysis

A value investor must first ask: what am I buying? At ₹33.04, this stock trades at half its book value of ₹65.94. Market cap is only ₹38 crore, implying a stated equity cushion of roughly ₹76 crore. That looks like a classic asset play. But a cheap price is only a good start. The business itself is bleeding. The latest quarter shows sales of negative ₹3 crore and a net loss of ₹6 crore. Annual sales fell 54.59% and profit fell 72.09%. Return on equity is minus 31.06%. This is not a quality franchise; it is a shrinking operation with deteriorating economics. The reported ROCE of 37.50% is at odds with these losses, and I would worry about how capital employed is being measured. Piotroski F-score of 3 out of 9 confirms poor financial health. No dividend, no positive earnings, so the P/E of 0.00 is meaningless. Promoter holding of 64.43% at least aligns promoter interests with minority shareholders, and the balance sheet may offer a cushion. However, with losses consuming book value, a 50% discount to book can widen if the assets are worth less than stated. Graham would say buy assets at a discount, but only after checking that the assets can be realised and that losses do not destroy equity. I would not call this a growing business or a steady compounder. It is a special situation, an asset play, whose first test is cash burn. If management can stabilise operations, turn revenue positive, and preserve book value, the discount could close. If losses continue, book value will fall toward price.

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