Sri Lak.Sar.Arni (521161)

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

Key Financials

Strengths

• Latest quarter sales of ₹21 Cr implies annualised revenue around ₹84 Cr, roughly six times the ₹14 Cr market cap, offering operating leverage if margins recover.
• Reported trailing ROE of 27.23% indicates the business has generated high returns on equity recently, though current losses make it unreliable.
• Piotroski F-Score of 5/9 is not a failing score and suggests some financial health indicators are positive.
• Reported profit growth of +10.79% provides a small positive earnings signal despite declining sales.

Concerns

• Latest quarter net loss of ₹5 Cr on sales of ₹21 Cr is severe; it equals about 36% of market cap in a single quarter.
• Sales growth is -20.65%, showing the core business is contracting.
• Book value, P/B, debt/equity, and promoter holding are N/A, so asset cover and managerial skin in the game cannot be assessed.
• P/E is 0.00, ROCE is 0.00%, and dividend yield is 0%, offering no valuation or return anchor.

AI Analysis

At the outset, this is not a business I can intelligently value. Sri Lak.Sar.Arni has a market capitalisation of only ₹14 crore and trades at ₹42.59, yet P/E is 0.00, book value is unavailable, ROCE is zero, and debt is undisclosed. Graham’s first rule is: do not invest in something you cannot quantify. Here, even the balance-sheet foundation is a mystery. The latest quarter tells the story: sales of ₹21 crore produced a net loss of ₹5 crore. That one quarter’s loss is more than a third of the entire company’s market cap. With sales growth down 20.65%, the core business is shrinking and losing money. The reported ROE of 27.23% is a rear-view mirror number, contradicted by current operations. Piotroski F-Score of 5/9 is moderate, but it does not cure a loss-making quarter. Textile products are commodities with little pricing power, and no moat is evident. There is no dividend, and ROCE is zero, so shareholders get no cash return. The only faint positives are the low revenue multiple—annualised sales of roughly ₹84 crore against a ₹14 crore market cap—and reported profit growth of 10.79%, which may be non-operating or tax-related. But a value investor does not pay for hope; he waits for proof. This is a possible turnaround, but only if management stops the bleeding, stabilises sales, and shows consistent positive earnings. I would put this in the 'too hard' pile until real numbers—book value, debt, cash flow, promoter holding—are available and quarterly losses reverse.

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