Newtrac Foods (514060)

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

Key Financials

Strengths

• Book value of ₹5.93 provides a tangible per-share asset base to work from.
• Reported ROCE of 83.28% indicates the existing capital employed can generate high operating returns if activity resumes.
• Market cap is only ₹36 Cr, so even a modest absolute profit recovery could move the stock meaningfully.
• Price at the top of its 52-week range suggests renewed interest, though this is not fundamental.

Concerns

• Latest quarter sales are ₹0 Cr and sales growth is -100%, so the trading/distribution business is effectively dormant.
• Profit growth at -273.33% with negative ROE means losses are compounding, not recovering.
• At ₹17.67, the stock trades at 2.98 times book value of ₹5.93 with zero earnings, providing no margin of safety.
• Piotroski F-score of 3/9 and unavailable promoter holding data point to weak financial health and poor transparency.

AI Analysis

Let me start with the obvious: a company with zero quarterly sales and negative profit growth of -273% cannot be called a business in any conventional sense. Newtrac Foods trades at ₹17.67, but the latest quarter shows ₹0 Cr revenue and ₹0 Cr net profit. The P/E of 0.00 is not cheapness; it is a meaningless number for a company earning nothing. Sales growth of -100% tells me the distribution activity has collapsed. A 3/9 Piotroski score reinforces weak fundamentals. I cannot identify a durable moat, and there is no evidence of a competitive advantage. The ROE is -0.23%, while the return on capital employed shows 83.28%—a contradiction that raises red flags rather than confidence. The book value is ₹5.93, yet I would be paying almost three times that book value for no earnings. That is the opposite of margin of safety. I also see no dividend, and promoter holding is not disclosed, which is another transparency concern. In Buffett's framework, we buy businesses, not tickers. This is a wrapper with no operating pulse. The 52-week range of ₹3.70 to ₹17.67 suggests speculative chasing, not fundamental accumulation. A small ₹36 Cr market cap can move violently, but smallness is not safety. I would not call this a turnaround until I see a profitable quarter and a line of business. Until then, this belongs on the 'too hard' pile. My discipline: avoid permanent capital loss.

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