NCC Blue Water (519506)

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

Key Financials

Strengths

• Price of ₹9.73 is slightly below book value of ₹10.23, giving a narrow P/B margin of safety on reported assets.
• Reported ROE of 28.76% looks superficially attractive, though it is inconsistent with operating returns.
• Latest quarter shows a net profit of ₹2 Cr, suggesting some positive earnings, even with zero sales.
• Tiny ₹8 Cr market cap could allow for a future control event or restructuring, but this is highly speculative.

Concerns

• Latest quarter sales are ₹0 Cr and sales growth is 0%, meaning there is no visible operating business.
• Profit growth is -120% and ROCE is only 2.50%, indicating poor real capital productivity.
• Piotroski F-Score of 3/9 signals weak overall financial health.
• Lack of promoter holding data, debt/equity disclosure, and a price below the stated 52-week range raise governance and liquidity red flags.

AI Analysis

At first glance, this looks like a Graham cigar butt: ₹9.73 price against ₹10.23 book value, a 5% discount, and a market cap of just ₹8 crore. But Buffett's first rule is to never invest in something you can't understand with a margin of safety. NCC Blue Water is a seafood enterprise that, in its latest quarter, reported sales of zero rupees and a net profit of ₹2 crore. That profit is not from operations; a business with no sales cannot generate sustainable earnings. The reported ROE of 28.76% therefore is likely an artifact of accounting or non-recurring items, especially since ROCE is only 2.50%. Profit growth has collapsed by 120%, and the Piotroski F-score of 3 out of 9 tells me the fundamentals are deteriorating. Debt/equity is unavailable, promoter holding is unknown—so I cannot judge who is aligned with me or whether the balance sheet is safe. There is no dividend, no growth, and no moat. Seafood is a commodity, with pricing power dictated by catch, weather, and export markets. At ₹8 crore market cap, this is a microcap with liquidity concerns; the fact that the current price is below the stated 52-week range is another red flag. As a value investor, I prefer a wonderful business at a fair price over a poor business at a cheap price. This is not a wonderful business; it may be an asset play, but asset value only matters if I can force a sale or if the business can generate cash. There is no evidence of either. I'll pass. If the company eventually shows genuine sales, meaningful operating profit, and cleaner governance, I'd take another look. Until then, the book value is a trap, not a safety net.

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