Norris Medicines (524414)

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

Key Financials

Strengths

• Latest quarter sales of ₹3 Cr and net profit of ₹1 Cr show the business has turned profitable recently.
• Sales growth of 194.59% and profit growth of 350.00% indicate strong momentum, albeit off a low base.
• Piotroski F-Score of 6/9 suggests improving financial health across several accounting dimensions.
• Small market cap of ₹14 Cr leaves room for significant absolute growth if the franchise improves.

Concerns

• ROCE of -10.13% and ROE of 0.86% reflect poor capital efficiency and lack of a competitive moat.
• P/E of 0.00 and N/A book value/debt-equity make conventional valuation unreliable.
• Trading and distribution is a low-barrier, low-margin business in which pricing power is rare.
• No dividend, no promoter holding disclosure, and a 33% net margin in latest quarter raise red flags about earnings quality.

AI Analysis

When I look at Norris Medicines, the first thing I tell myself is: growth is not the same as value. Sales jumped 194.59% and profit grew 350.00%, but those numbers come off a tiny base in an industry—trading and distribution—that almost never offers a durable moat. The quality of the business is poor: ROE is just 0.86%, and ROCE is deeply negative at -10.13%. That means the company is not earning a satisfactory return on either shareholder equity or capital employed. For a trader, those numbers are dangerous. The price is ₹13.07, near the bottom of the ₹12.00-₹19.25 range, and the market cap is only ₹14 crore. With P/E shown as 0.00 and book value N/A, I cannot apply my normal valuation framework. The latest quarter had sales of ₹3 crore and net profit of ₹1 crore—a 33% margin that would be extraordinary for a pure distribution business, so I would immediately question its sustainability. The Piotroski score of 6/9 gives a little comfort that financial health is improving, but a score is not a substitute for a strong balance sheet or pricing power. There is no dividend, promoter holding is not disclosed, and debt/equity is N/A. In Benjamin Graham's language, this is speculative, not investment. If this is a turnaround, it is still unproven. I would need several more quarters of cash profits, improving returns on capital, and transparent ownership before putting this in my portfolio.

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