Cosmo Ferrites (523100)

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

Key Financials

Strengths

• Book value is positive at ₹24.01, so the company is not insolvent on paper.
• Latest quarterly loss is only ₹1 Cr against ₹19 Cr sales, suggesting the deterioration may be nearing a trough.
• ROCE at -0.74% is only marginally negative, so a modest sales recovery could push operations closer to profitability.
• The stock has rebounded from its 52-week low of ₹89.95 to ₹179.70, indicating some buying support.
• No dividend obligation conserves cash during a potential turnaround attempt.

Concerns

• Negative ROE of -12.73% and profit growth of -137.78% show clear shareholder wealth destruction.
• P/E of 0.00 and P/B of 7.48 mean you are paying a rich price for a loss-making business with no margin of safety.
• Sales declined 15.17%, latest quarter still net negative, and Piotroski F-Score of 2/9 signals weak financial health.
• No dividend, no debt/equity disclosure, and no promoter holding data reduce transparency and confidence.

AI Analysis

Let me start with the obvious: Cosmo Ferrites is not a business Benjamin Graham would touch with a ten-foot pole today. The price is ₹179.70, but the book value is only ₹24.01, so you are paying 7.48 times book for a company earning negative returns. P/E is meaningless at zero because profits are absent. ROE is -12.73%; ROCE is -0.74%. In other words, capital employed is barely earning anything, and shareholders are seeing value destroyed. Sales have shrunk 15.17%, and profit growth collapsed 137.78%. The latest quarter shows revenue of ₹19 Cr and a small net loss of ₹1 Cr. That is still a loss, and with a Piotroski F-Score of 2 out of 9, the financial health signals are poor. There is no dividend, so patient shareholders aren't even being paid to wait. The 52-week range of ₹89.95 to ₹277.00 tells me this is a volatile, speculative name. Mr. Market has recently marked it up from the lows, but value investing demands a margin of safety; at 7.48 times book with negative earnings, there is none. Could this be a turnaround? Possibly, but a turnaround only works if operations improve, and so far the numbers are moving the wrong way. Debt/equity is not available, and promoter holding is not disclosed, which only increases uncertainty. In Graham's language, this is no cigar-butt at this price. I would wait for tangible evidence of sales stabilisation, positive quarterly profits, and a price that gives you protection from capital loss. Until then, this remains a show-me story, not an investment.

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