Restile Ceramics (515085)

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

Key Financials

Strengths

• Sales growth of 440.74% year-on-year, albeit from a tiny base, suggests business activity is expanding.
• Latest quarter generated ₹1 crore in sales, showing some commercial traction in the micro-cap ceramics segment.
• Piotroski F-Score of 6/9 indicates moderate financial improvement across profitability, leverage, and efficiency metrics.
• Small market cap of ₹48 crore means low expectations are already embedded; any genuine turnaround could move the stock sharply.

Concerns

• No real earnings power: latest quarter net profit is ₹-0 crore and P/E is 0.00.
• ROCE is -12.98%, meaning existing capital is being deployed at a loss; ROE of 0.11% is negligible.
• Market cap of ₹48 crore is roughly 12 times annualized quarterly sales of ₹4 crore, leaving no valuation cushion.
• Stock trades below its 52-week low of ₹5.51; no dividend; missing data on debt, book value, and promoter holding create opacity.

AI Analysis

At first glance, Restile Ceramics looks cheap at ₹4.93 with a ₹48 crore market cap, but cheap can be dangerous. This is a microcap ceramics company with latest quarterly sales of only ₹1 crore, so even at that run-rate, the market price is roughly 12 times sales. More importantly, there is no real profit: the latest quarter shows net profit of ₹-0 crore, and the P/E is zero. ROE is 0.11%, while ROCE is -12.98%, meaning the existing capital is destroying value, not creating it. The 440.74% sales growth sounds spectacular, but it starts from a tiny base; profit growth of 25% on a negligible figure is meaningless. The stock trades below its 52-week low of ₹5.51, which tells me the market is not pleased. I cannot find a moat here—ceramics is competitive, cyclical, and capital-hungry, and a company of this size has no pricing power or scale. There is no dividend, no book value data, no debt/equity ratio, and no promoter holding figure, so I cannot judge financial health or insider alignment. The Piotroski F-Score of 6/9 is a small positive, but it does not offset negative returns on capital. Graham would ask: where is the margin of safety? A ₹48 crore valuation for a business earning nothing, with ₹1 crore quarterly revenue, offers no margin. This could be a turnaround if new orders are flowing and margins improve, but I need proof in financial statements, not just percentage growth. Until I see sustainable profits and positive ROCE, I would leave this to speculators. In the words of Buffett, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' Restile is not wonderful.

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