Black Rose Indus (514183)

FairStock Score: 10/100 — RISKY

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

Key Financials

Strengths

• Return on capital employed of 18.97% indicates decent capital efficiency.
• Return on equity of 13.33% is still in double digits despite the downturn.
• The latest quarter is profitable: ₹4 crore net profit on ₹75 crore sales.
• Modest dividend yield of 1.29% provides a small income cushion.

Concerns

• Sales growth of -14.31% and profit growth of -25.51% show clear deterioration.
• Piotroski F-Score of 3/9 signals weak and worsening financial health.
• Valuation is rich: P/E of 21.79 and P/B of 4.73 while earnings are falling.
• The stock is near its 52-week high of ₹137.95, yet the last quarter margin is thin and FairStock score is 10/100.

AI Analysis

Let me start with what I like: this is a specialty chemicals business, and the return on capital employed is 18.97%, with return on equity at 13.33%. Those are not terrible numbers. But investing is about the future, and the recent figures point downhill. Sales are down 14.31% and profits are down 25.51%. The latest quarter adds just ₹4 crore net profit on ₹75 crore of sales - a thin margin. The Piotroski F-Score is only 3 out of 9, which tells me the financial health is deteriorating, not improving. Benjamin Graham taught me to buy with a margin of safety. At ₹131.65, the market cap is ₹676 crore, which is 21.79 times earnings. For a company whose earnings are shrinking, that multiple offers little cushion. The price-to-book ratio is 4.73 against a book value of ₹27.81. I am paying nearly five times tangible net worth for a business with falling sales and falling profit. The dividend yield of 1.29% is modest, not enough to compensate for the risks. I also note that the stock sits near its 52-week high of ₹137.95, while the fundamentals are moving in the opposite direction. That is a dangerous disconnect. Price is what you pay; value is what you get. Here, the value seems to be eroding. I cannot rely on debt-equity data because it has not been provided, and that makes me even more cautious; without knowing the leverage, I cannot judge the safety of the balance sheet. This looks like a cyclical or struggling specialty chemical player being priced for perfection. I would rather miss the bounce than lose capital. I need to see stable sales, profit recovery, and an attractive price before I commit. For now, I pass.

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