Lotus Chocolate (523475)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor, so I start with price and value. Lotus Chocolate trades at ₹851.65, giving a ₹1,094 Cr market cap. Book value is only ₹43.31, so P/B is 19.66; P/E is 167.96. Mr. Market is asking a heroic price. The latest quarter showed Sales ₹134 Cr and Net Profit ₹0 Cr. Sales growth is -8.90%, profit growth -96.24%. That is a business whose recent momentum has broken, even if the 5-year revenue CAGR of 64.60% suggests a much faster past. ROE is 10.99% and ROCE 23.60%; ROCE is respectable, but ROE is not exceptional, and neither protects me at this valuation. The Piotroski F-Score is 3/9 and FairStock 0/100 RISKY. The 52-week range of ₹540–₹1,199 shows how volatile sentiment is. No dividend yield. Debt/equity and promoter holding are unavailable, so I cannot fully judge balance-sheet risk or owner alignment. In Graham’s terms, there is no margin of safety: I am paying nearly 20 times book for zero quarterly profit. In Buffett’s terms, I need a durable moat and predictable earnings; the data show a packaged-foods company with shrinking sales and collapsing profit, not a compounding machine. A high past revenue CAGR can create a narrative, but the latest numbers are what matter. Unless earnings revive sharply, the valuation is speculative. I would require a much lower price or clear profit recovery before considering it. I would wait for evidence, not hope.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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