Guj. Terce Labs. (524314)

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

Key Financials

AI Analysis

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

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.

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