Guj. Terce Labs. (524314)

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

Key Financials

Strengths

• Latest quarter shows a net profit of ₹1 Cr on sales of ₹12 Cr, indicating a possible operating recovery.
• Reported ROCE of 41.41% suggests capital-efficient use of operating assets, if sustainable.
• Sales decline of only -3.08% is modest, not a collapse in the customer base.
• The company remains profitable at the quarterly level despite weak annual numbers.

Concerns

• Negative ROE of -14.33% with a P/B of 4.19 means investors are paying a rich multiple for a business destroying shareholder value.
• Profit growth is down -24.75% and the Piotroski F-Score is a weak 3/9.
• P/E is 0.00, making the headline valuation meaningless and pointing to poor trailing earnings.
• No dividend, no promoter holding data, and no debt/equity details create serious transparency and governance concerns.

AI Analysis

This is a tiny ₹36 crore pharmaceutical micro-cap, and my first rule is size: I cannot see a durable moat at this scale. The price is ₹47.03, but book value is only ₹11.22, so I am paying 4.19 times book for a company whose return on equity is -14.33%. A P/E of 0.00 is not a sign of cheapness; it means trailing earnings are effectively missing or meaningless. Sales are shrinking at -3.08%, and profits are down -24.75%, so there is no growth tailwind. The latest quarter does show a small net profit of ₹1 crore on ₹12 crore of sales—welcome, but one quarter is not a trend. ROCE of 41.41% looks odd next to a negative ROE; it suggests some operating assets are highly productive, but somewhere between operations and shareholders, value is being lost. The Piotroski score of 3/9 further worries me: the business has poor financial health. No dividend, no promoter holding data, and no debt-equity details mean I cannot assess integrity or leverage. Value investing means buying assets at a discount and earning a reasonable return; here the price is far above book and returns are negative. This is not a Graham-style net-net or a growing compounding machine. It may be a turnaround if the quarterly profit continues, but I need proof over several quarters before using my own capital.

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