Salora Intl. (500370)

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

Key Financials

Strengths

• Trades at P/B 0.98, a slight discount to book value of ₹59.94 per share
• Latest quarter sales of ₹16 Cr show the company still has some operating presence
• Stock is near its 52-week high, indicating some market optimism or momentum
• Small market cap of ₹53 Cr may make it a potential target for asset buyers

Concerns

• Sales growth of -60.68% indicates severe loss of business
• ROE at -2.54% and ROCE at -0.56% show value destruction
• Piotroski F-Score of 2/9 signals very poor financial health
• Zero dividend yield and negligible net profit provide no income support

AI Analysis

Let me start with the obvious: Salora Intl. is not a business I would want to own. It is a trading and distribution company, an industry with little moat and heavy competition. The numbers confirm my suspicion. Sales have fallen by 60.68% in the latest quarter, and profits are down 48.48%. Return on equity is -2.54%, and return on capital is -0.56%; the company is not generating enough to cover its own cost of capital. The Piotroski F-Score of 2 out of 9 reinforces the picture of a weak balance sheet and poor operations. There is no dividend, and the P/E ratio is meaningless because earnings are near zero. The only datum that catches a Graham investor's eye is the price-to-book ratio: at ₹58.92, the stock trades at 0.98 times book value of ₹59.94 per share. On the surface, that seems like a margin of safety. But a discount to book is only valuable if the assets are worth their stated values. In a trading firm, inventory and receivables can evaporate quickly when sales collapse. With a 60.68% drop in sales, the quality of those assets is questionable. Debt/equity is not available, so I cannot assess leverage risk. The stock sits near its 52-week high of ₹58.92, while the business is deteriorating. That is a contradiction. I would rather pay a low price for a good business than a reasonable price for a poor one. Here, the business earns negative returns, and the market cap of ₹53 crore is not justified by earnings. Unless management can show a credible turnaround or a concrete plan to liquidate and return capital, this is a pass for me.

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