Modella Woollens (503772)

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

Key Financials

Strengths

• Piotroski F-score of 5/9, though moderate, suggests no acute financial distress from the limited data.
• Reported profit growth of 33.33% shows some positive momentum, albeit from a negligible base.
• Current price of ₹71.12 is above the 52-week low of ₹56.60, implying a degree of market support.

Concerns

• Sales are ₹0 crore; the company is effectively non-operating with no visible business engine.
• Net profit is ₹-0 crore (negative), leading to a P/E of 0.00 and no earnings floor for valuation.
• Book value and debt/equity are N/A, leaving no disclosed tangible asset or leverage picture.
• Promoter holding is N/A, so management alignment cannot be assessed; no dividend is paid.

AI Analysis

To quote Graham, 'the investor's chief problem—even his worst enemy—is likely to be himself.' Modella Woollens tempts with a 90.22% ROE and 33.33% profit growth, but these are mirages when sales are ₹0 crore and net profit rounds to negative zero. A company that generates no revenue has no earning power to compound. The ₹7 crore market cap, at ₹71.12 per share, cannot be anchored to any tangible valuation because book value is not available. As Buffett says, 'risk comes from not knowing what you're doing'—and we don't know what this business does for money. The P/E of 0.00 confirms there are no earnings to justify a multiple. The Piotroski F-score of 5/9 offers no comfort; it's mediocre at best. With a 52-week range of ₹56.60 to ₹74.75, the stock is a microcap trader's toy, not an investment. My margin of safety is impossible to compute without book value, debt, or cash flow figures. This looks like a shell or non-operating entity, not a going concern. In the absence of evidence of a turnaround, a moat, or assets, I would classify this as a speculation. As Graham wrote, 'an investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return.' Modella fails both tests. I will not invest; I will watch from the sidelines.

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