C J Gelatine (507515)

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

Key Financials

Strengths

• Latest quarter sales of ₹10 Cr are huge relative to the ₹11 Cr market cap, giving a low price-to-sales look if the top line can hold.
• Book value of ₹9.31 per share provides some tangible asset backing, though the current price is well above it.
• Being in specialty chemicals gives the company a potential niche in food and pharmaceutical applications, if it can ever convert sales into profits.

Concerns

• Earnings power is near zero: latest quarter net profit is ₹0 Cr and P/E is 138.17 on a 35.29% profit decline.
• ROE of 1.36% and ROCE of 5.86% are far below acceptable returns on capital, indicating no economic moat.
• Piotroski F-Score of 3/9 points to weak financial health and deteriorating fundamentals.
• No dividend, negative sales growth, and promoter holding not disclosed leave the retail investor with no compensation for risk and limited transparency.

AI Analysis

At ₹20.77, this is a ₹11-crore market cap company with a book value of ₹9.31 per share. That means I am being asked to pay 2.23 times book for a business that earns just 1.36% on equity. Benjamin Graham would tell me to demand either a bargain price or a quality business, and this is neither. The latest quarter shows sales of ₹10 crore and net profit of ₹0 crore — zero. The full-year picture is worse: sales fell 6.68% and profits fell 35.29%. A P/E of 138.17 is not a growth premium; it is an accounting echo of a tiny earnings base. With no dividend yield, the shareholder gets nothing while waiting. ROCE of 5.86% is barely above what a fixed deposit might offer, and the Piotroski F-score of 3/9 suggests the balance sheet and operations are deteriorating, not improving. I do not see a moat. Gelatine is a specialty chemical, but these numbers show no pricing power — if they had pricing power, sales would not be shrinking and margins would not be evaporating. At the 52-week high of ₹20.77, the market is celebrating something; the business is not delivering. Some might call it a turnaround candidate, but a turnaround requires evidence of improving operations. I see none. For a retail investor, a microcap with ₹11 crore in market cap and zero profit is a speculation, not an investment. I will keep it on my watchlist, but I will not put my capital at risk until I see positive quarterly earnings, stabilised sales, and a return on equity that at least clears 10-12%. Patience is fine; losing money is not.

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