Bombay Cycle (501430)

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

Key Financials

Strengths

• Sales growth of 14.24% shows some top-line momentum.
• Piotroski F-Score of 7/9 suggests reasonably healthy balance-sheet signals.
• Book value of ₹759.73 per share provides some asset backing, though at a premium.
• ROE and ROCE are positive at around 8%, indicating the business generates some capital returns.
• PEG of 0.10 appears cheap if the reported profit growth proves sustainable.

Concerns

• Latest quarter shows sales of only ₹3 Cr and net profit of ₹0 Cr, raising serious earnings-quality questions.
• P/E of 51.64 and P/B of 2.47 are rich for an 8% ROE business with no apparent moat.
• The 1000% profit growth is from an extremely low base and is not meaningful without sustained evidence.
• Dividend yield of just 0.29% gives shareholders negligible income while waiting.
• Promoter holding and debt/equity are not available, leaving ownership and leverage unclear.

AI Analysis

At first glance, this is exactly the kind of small, obscure name I usually walk past. Bombay Cycle is a trading and distribution business with a market cap of just ₹78 Cr. The market is asking me to pay a P/E of 51.64 and a P/B of 2.47 for a company earning an ROE of only 8.38% and ROCE of 8.05%. That is an expensive ticket for a mediocre return on capital. A 14.24% sales growth is respectable, but the latest quarter tells a more sobering story: sales of ₹3 Cr and essentially zero net profit. The 1000% profit growth looks eye-catching, but when the base is tiny, a large percentage can be a mirage. Graham would ask: where is the margin of safety? At 2.47 times book, there is little. The dividend yield of 0.29% offers almost no compensation while you wait. The Piotroski score of 7/9 suggests the company is not financially distressed, and the PEG of 0.10 makes the growth story look cheap only if profit growth is sustainable. But with quarterly profit at zero, I doubt it. This appears to be a small, low-moat trading operation, not a business with durable competitive advantages. I need a wide moat, consistent earnings, and a sensible price. Here I see none of those. It might be a turnaround if management's recovery is real, but I have no evidence of that. For a retail investor, this is a casino ticket, not an investment. I would wait for either a much lower price or years of proven earnings growth before considering it.

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