Mac Charles(I) (507836)

FairStock Score: 10/100 — RISKY

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

Key Financials

Strengths

• Revenue growth of 1,081.59% suggests a significant business inflection or expansion in the latest quarter.
• Piotroski F-Score of 6/9 indicates moderate financial health on fundamental signals.
• Book value of ₹304.35 per share provides some asset support at current price.
• Profit growth of 69.40% implies losses are narrowing from the previous comparable period.

Concerns

• Latest quarter net loss of ₹63 crore against sales of ₹33 crore—operating model still deeply unprofitable.
• Negative ROE of -19.73% and ROCE of -1.47% show capital is being destroyed.
• Zero dividend yield and no P/E offer no earnings support or cash return.
• Current price ₹475.25 is below the 52-week low of ₹512, indicating weak market sentiment.

AI Analysis

At first glance, the 1,081% sales growth catches my eye, but in my world a business is worth only what its future cash flows can justify. Mac Charles reported latest-quarter sales of ₹33 crore and a net loss of ₹63 crore. That means it loses nearly two rupees for every rupee of revenue. No P/E is possible because there are no earnings; the price-earnings ratio of 0.00 is simply a warning, not a bargain. Return on equity is -19.73% and ROCE is -1.47%, so existing capital is being eroded, not compounded. The book value of ₹304.35 per share offers some asset backing, and at ₹475.25 the stock trades at 1.56 times book. That multiple is not cheap when the business is burning money. A 52-week range of ₹512 to ₹785, with the current price below the lower end, tells me the market is already disappointed. There is no dividend, so investors get no cash return while waiting. The Piotroski score of 6/9 is the only mildly positive sign, and the 69% improvement in profit suggests losses may be shrinking, but a smaller loss is still a loss. The FairStock score of 10/100 appropriately labels the risk. I would need to understand why sales jumped and whether that revenue can ever produce a margin. Hotels and resorts are cyclical and asset-heavy; in good times they can print money, but in bad times they burn cash. Here, with negative ROE and ROCE, I do not see a moat—I see a turnaround story that is unproved. If management can convert the revenue bounce into positive operating profit and show sustainable cash flow, the asset backing could support a re-rating. Until then, this is a 'no' for me. I would rather wait for a margin of safety after earnings, not before.

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