Gourmet Gateway (506134)
TurnaroundFairStock Score: 9/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹39.99 |
| Market Cap | ₹553.3 Cr |
| P/E Ratio | 0 |
| ROCE | 4.32% |
| ROE | -0.22% |
| Dividend Yield | 0% |
| Profit Growth | 220% |
| Debt/Equity | — |
| Sales Growth | 15.06% |
| 52-Week Range | ₹6.66 — ₹39.99 |
| Sector | Leisure Services |
| Book Value | ₹3.77 |
Strengths
- Sales growth of 15.06% shows the business is expanding revenue
- Piotroski F-Score of 7/9 points to improving fundamentals
- ROCE of 4.32% suggests the company can generate some operational return on capital employed
- Profit growth of 220% indicates a turnaround attempt from a very low base
Concerns
- No real earnings visibility: P/E is 0.00 and latest quarterly net profit is ₹0 crore
- ROE is negative at -0.22%, meaning shareholders' equity is not earning a return
- Valuation is extreme: P/B of 10.61 versus book value of ₹3.77, with price near 52-week high of ₹39.99
- FairStock Score is 9/100, flagged risky; debt/equity and promoter holding data are not disclosed
AI Analysis
Look at this as an investor: Gourmet Gateway sells at ₹39.99, which is also the top of its 52-week range. The market cap is ₹553 crore, yet I cannot see earnings: P/E is 0.00, and the latest quarter shows net profit of exactly ₹0 crore. Even the return on equity is negative at -0.22%. Benjamin Graham taught me to pay a sensible price for a business, not a hope. Here, price-to-book is 10.61 against book value of just ₹3.77. That means I am asked to pay more than ten times assets for a restaurant business that earns nothing on those assets. The 220% profit growth looks impressive, but when the starting base is near zero, percentages are misleading. Sales did grow 15.06%, and ROCE is positive at 4.32%, but restaurants are capital-hungry, high-competition businesses without durable moats. The Piotroski score of 7/9 suggests some balance-sheet improvements, which is good, but a FairStock score of 9/100 reminds me to be cautious. There is no dividend, and debt/equity is not disclosed; in a leveraged business, unknown debt is a red flag. The stock has risen from ₹6.66 to ₹39.99 in a year, so the market has already priced in a perfect turnaround. As a value investor, I need margin of safety. I find none here. I would keep it on a watchlist and wait for proof of consistent profits, sustainable positive ROE, and a more reasonable price relative to book value.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer