Sri Nacha. Cott. (521234)

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

Key Financials

Strengths

• Price of ₹35.75 is below book value of ₹41.61, giving a 14% stated asset cushion.
• Market cap of ₹16 Cr is very low relative to latest quarterly sales of ₹17 Cr, leaving room for a special-situation buyer if assets are unlocked.
• The stock is trading within its 52-week range of ₹25.00 to ₹39.94, not at extreme speculative highs.

Concerns

• Latest quarter shows a net loss of ₹3 Cr on sales of ₹17 Cr, a severe operational loss.
• Profit growth is -173.21% and ROCE is -0.23%, indicating capital is not earning a decent return.
• Piotroski F-Score of 2/9 points to poor financial health and possible distress.
• Zero dividend, undisclosed promoter holding, and a tiny ₹16 Cr market cap create governance and liquidity risks.

AI Analysis

At ₹35.75, Sri Nacha Cott is a ₹16 crore micro-cap, and the first thing that attracts a Graham-style investor is a stock trading below its stated book value of ₹41.61. That is a P/B of 0.86. But Graham also taught me that a cheap price is only an invitation to investigate, not a purchase order. This is an 'other textile products' company, a commodity space where pricing power is rare and durable competitive advantages are hard to find. The financials confirm my caution. ROCE is negative at -0.23%, ROE is just 3.72%, and the latest quarter lost ₹3 crore on sales of ₹17 crore, which is an enormous net loss margin. Profit growth has collapsed by -173.21%, and sales are falling at -2.84%. This is not a wonderful business; it is a struggling operation. The Piotroski F-Score of 2/9 reinforces the weak financial health. There is no dividend, and promoter holding is not disclosed, so a minority shareholder is quite exposed. The only real appeal is the asset angle: price ₹35.75 versus book value ₹41.61 gives a 14% stated discount. But if the losses continue, that book value will shrink, and the margin of safety will disappear. This is not a business I would want to own for ten years; at best it is a candidate for deep-value specialists who can verify the true liquidation value, push for discipline, and wait for a catalyst. I need much more evidence of a genuine turnaround before acting. A modest discount to a deteriorating book is not enough for me.

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