OTCO Intl (523151)

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

Key Financials

Strengths

• Book value of ₹1.89 per share provides some asset backing, though the price is 3.9x book.
• Latest quarter loss rounds to ₹-0 Cr, so absolute cash burn appears limited.
• ROCE is marginally positive at 0.34%, suggesting some residual capital efficiency.
• Small market cap of ₹10 Cr means a genuine recovery could be meaningful if revenue ever appears.

Concerns

• Sales are effectively ₹0 Cr; there is no revenue engine supporting the consulting business.
• ROE is -13.07%, indicating persistent shareholder value destruction.
• Profit growth of -1100% shows losses are expanding, not contracting.
• P/B of 3.90 is expensive for a loss-making company, and there is no dividend yield.

AI Analysis

Friends, this is precisely the type of file I would put in the too-hard pile. OTCO Intl has a market cap of only ₹10 Cr and trades at ₹7.38, yet the underlying business shows no real earning engine. The latest quarter reports sales of ₹0 Cr and net profit of ₹-0 Cr; reported profit growth has collapsed by -1100%, meaning losses have widened. With a negative ROE of -13.07% and a Piotroski F-Score of just 3/9, I see a business that is destroying small amounts of shareholder value rather than compounding it. A P/E of 0.00 is not a bargain sign; it is an accounting signal that profits are absent. The one tangible support is book value of ₹1.89 per share. But at ₹7.38 I am paying 3.9 times book for a company that earns -13% on that book. Ben Graham would call that the opposite of margin of safety. There is no dividend to compensate me, promoter holding is not disclosed, and debt/equity is unavailable, so I cannot judge the financial structure clearly. A consulting firm with no sales, no profit, and no moat is just a shell waiting for a reason to exist. Some may frame this as a cheap turnaround given the negligible market cap. I would rather wait for hard evidence: sustained revenue, narrowing losses, positive cash flow, and a return on equity that beats the risk-free rate. Until then, at 3.9 times book, this is speculation. The time to study this stock is after the turnaround is visible, not before. I will pass and keep my capital for a business that earns in good times and bad.

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