Sri Chakra Cem. (518053)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I begin with Mr. Market's offer: ₹6.67 per share, or a market cap of just ₹41 Cr. That looks cheap against a stated book value of ₹26.58 per share—a price-to-book of 0.25. But Benjamin Graham warned us that price and value must be tested by facts. The facts here are ugly. The latest quarter had sales of ₹27 Cr and a net loss of ₹9 Cr. Annualised, that is roughly a ₹36 Cr loss against a market cap of ₹41 Cr. ROE is -198% and ROCE is -69.7%. This is not a temporary cyclical dip; it is capital destruction. Cement is a commodity business, and without scale, low cost, and pricing power, a small producer like this has no moat. Sales growth of 4.52% is small comfort when every rupee of sales seems to produce losses. Profit growth of 26.08% may indicate the loss is narrowing, and the Piotroski F-Score of 6 gives a sliver of hope, but I cannot rely on reported book value if the business keeps eating it. The 52-week range of ₹34.50-₹99.29 versus the current ₹6.67 is also deeply disturbing—either the business was repriced for a reason, or something is wrong in the numbers. There is no dividend, no promoter holding disclosure, and no debt-equity data. I need a clear path to profitability, credible financials, and visible skin in the game before I call this a bargain. For now, it is a possible turnaround, not an investment.

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