Hemo Organic (524590)

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

Key Financials

Strengths

• Current price is closer to the 52-week low of ₹8.08 than the high of ₹22.51, reducing speculative upside expectations
• ROCE is positive at 2.65%, suggesting the small capital base is not entirely destroying operating value
• Latest quarter shows net profit of ₹-0 Cr, essentially near breakeven rather than accelerating losses
• Small market cap of ₹4 Cr could attract a promoter with a serious turnaround intent, though none is visible yet

Concerns

• Latest quarter sales are ₹0 Cr, meaning there is no visible operating business
• ROE is deeply negative at -25.14%, signalling poor capital allocation and shareholder value destruction
• P/E of 63 is nonsensical when profit growth is -100% and quarterly profit is zero
• Piotroski F-score of 3/9 and missing promoter/book value data indicate weak financials and poor transparency

AI Analysis

This is the kind of stock Graham would call a cigar butt, but even a cigar butt needs a puff left. Hemo Organic trades at ₹10.05 with a market cap of just ₹4 crore. On the surface, the P/E of 63 looks like an earnings story, but the latest quarter shows sales of ₹0 crore and net profit of ₹-0 crore. Profit growth is down 100%, and sales growth is 0%. This is not a growing business; it is a distributor shell with no apparent revenue engine. ROE is -25.14%, meaning shareholder equity is being eroded at a painful rate. ROCE of 2.65% is only modestly positive, and with a Piotroski F-score of 3 out of 9, the financial health is weak. There is no dividend, no promoter holding data, and no book value. In value investing, the first rule is not to lose money. Here, the absence of revenue and profit means I cannot calculate any reliable intrinsic value. The 52-week range of ₹8.08 to ₹22.51 shows the stock has fallen sharply, but a low price is not a reason to buy. This looks like a value trap in an illiquid micro-cap. Unless there is a clear catalyst — recoverable quarterly sales, transparent ownership, and a return to positive return on equity — this is unanalysable. Graham would demand a margin of safety, and there is no margin here, only data gaps. I would rather pass on Hemo Organic than risk permanent capital. If you already own it, watch for any real business activity beyond expenses.

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