Spel Semiconduct (517166)
TurnaroundFairStock Score: 8/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹232.8 |
| Market Cap | ₹1,073.61 Cr |
| P/E Ratio | 0 |
| ROCE | -10.85% |
| ROE | -124.22% |
| Dividend Yield | 0% |
| Profit Growth | 53.91% |
| Debt/Equity | — |
| Sales Growth | 10.07% |
| 52-Week Range | ₹122.9 — ₹232.8 |
| Sector | Electrical Equipment |
| Book Value | ₹5.74 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
Let me start with the ugly: a P/E of 0.00 does not mean cheap; it means there are no earnings to put in the denominator. Spel Semiconduct's latest quarter tells the real story: sales of ₹2 crore against a net loss of ₹12 crore. That is not a business; that is a cash furnace. Book value is only ₹5.74 per share, yet the price is ₹232.80. At 40.56 times book, the market is pricing in a spectacular recovery. Even if such a recovery arrives, Graham would demand a margin of safety; here, there is none. The reported 10.07% sales growth and 53.91% profit growth look positive, but I treat profit growth on a negative base with suspicion: a loss that shrinks can produce a huge percentage figure without creating real shareholder value. With ROE at -124.22% and ROCE at -10.85%, capital is being destroyed, not compounded. A Piotroski F-score of 6/9 is not terrible, but it is far from a clean bill of health. The FairStock Score of 5/100 labels it risky, and I agree. No dividend means management is not returning cash to shareholders, and with promoter holding and debt/equity not disclosed, I cannot judge insider alignment or leverage. I would not call this a moat. A company with quarterly sales of ₹2 crore and a market capitalisation of ₹1,074 crore would need an extraordinary, sustained turnaround to justify even a fraction of this price. The 52-week range of ₹121.05 to ₹262.80 tells me this is a speculative trading vehicle, not a steady compounder. As Buffett might say, it is far better to lose a chance than to lose capital. I need to see real earnings, positive and growing, for several quarters, a stronger balance sheet, and a competitive advantage I can understand before I would consider this. Today, it is a pass.
The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer