Cochin Malabar (508571)

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

Key Financials

Strengths

• P/E of 16.32 and reported profit growth of 28.57% give an apparently low PEG of 0.57, if earnings are sustainable.
• ROCE of 61.21% suggests the operating business generates a strong return on capital employed.
• Piotroski F-Score of 6/9 indicates some basic financial health checks are currently positive.
• The stock is at the top of its 52-week range (₹189.60 vs ₹110.20 low), showing market confidence or momentum.

Concerns

• ROE of -43.96% signals serious shareholder-equity erosion or negative book value, not a normal profitable franchise.
• Latest quarter sales of ₹0 Cr and net profit of ₹-0 Cr indicate negligible current operations.
• No dividend, zero sales growth, and absence of promoter holding/data make the earnings growth suspect.
• Book value and debt/equity are N/A; lack of transparency is dangerous in a ₹35 Cr micro-cap.

AI Analysis

Let me start with what I know: a ₹35 crore market cap, ₹189.60 price, P/E of 16.32. That tells me the market is putting a small earnings number on this business. But when I look deeper, the picture is confusing. Return on equity of -43.96% is a red flag. No honest owner wants a business that burns shareholder equity at that rate. ROCE at 61.21% sounds excellent, but without knowing the capital base and debt levels, I cannot trust it. The latest quarter shows sales of ₹0 crore and a net profit of negative ₹0 crore—rounded to zero. That is not a going-concern story; that is a company currently lacking meaningful operations. Sales growth is 0.00%, so there is no top-line momentum. Profit growth of 28.57% is meaningless if the base is tiny or earnings are non-operating. The Piotroski F-Score of 6/9 is interesting, but it cannot override the absence of revenue and book value. I would not call this a moat. A tyre/rubber products business without sales has no pricing power, no economic franchise, no dividend, and no promoter holding disclosed. The PEG ratio of 0.57 is a trap when earnings quality is unclear. In Benjamin Graham's language, this is a speculative micro-cap, not an investment. I need consistent earnings, positive book value, transparent debt, and evidence that the 28.57% profit growth is real and repeatable. The stock sits at its 52-week high, so optimism is already in the price. I would pass unless the company comes back with real sales.

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