Lotus Chocolate (523475)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹851.65 |
| Market Cap | ₹1,093.6 Cr |
| P/E Ratio | 167.96 |
| ROCE | 23.6% |
| ROE | 10.99% |
| Dividend Yield | 0% |
| Profit Growth | -96.24% |
| Debt/Equity | — |
| Sales Growth | -8.9% |
| 52-Week Range | ₹540 — ₹1,281 |
| Sector | Food Products |
| Book Value | ₹43.31 |
Strengths
- ROCE of 23.60% indicates historically efficient use of capital in the operating business.
- Latest quarter sales of ₹134 Cr show the company still has meaningful revenue scale.
- Book value of ₹43.31 per share provides an asset-level reference point, though price is far above it.
Concerns
- P/E of 167.96 and P/B of 19.66 make the valuation extremely stretched.
- Profit growth collapsed by 96.24%, and latest quarter net profit is ₹0 Cr.
- Sales growth is negative at -8.90%, showing top-line contraction.
- Piotroski F-Score of 3/9 and FairStock Score of 0/100 signal weak financial health and high risk.
AI Analysis
I am not in the business of buying hope at any price. Lotus Chocolate has an ROCE of 23.60%, so the underlying operations have historically earned decent returns on capital, but that is where the good news ends. Sales are down 8.90%, profits are down 96.24%, and the latest quarter net profit is ₹0 Cr. Meanwhile, the market is asking ₹851.65 for a share with book value of ₹43.31 and a trailing P/E of 167.96. In Graham's language, price is what you pay, value is what you get—here the price appears to be paying for a recovery that has not arrived. The 23.60% ROCE is a useful anchor, but it becomes meaningless if earnings do not stabilize. The Piotroski score of 3 out of 9 tells me the financial position is deteriorating, not strengthening. There is no dividend yield, so the investor receives no cash while waiting. I cannot call this a margin-of-safety purchase. At 168 times earnings, with zero current profits, any disappointment will be punished. This is a turnaround story at best, and turnarounds seldom turn. If I were to watch it, I would need to see quarterly net profit move from zero to meaningful positive, sales growth return, and the ROCE hold above current levels. Until then, this is not an investment; it is speculation in a branded wrapper.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer