Welterman Intl. (526431)

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

Key Financials

Strengths

• Piotroski F-Score of 5/9 suggests moderate overall financial health, not acute distress.
• Reported profit growth of 22.22% is positive, indicating earnings improved from the prior year, albeit off a negligible base.
• ROE is positive at 2.14%, confirming some net equity remains in the company.

Concerns

• Latest quarter sales are ₹0 Cr and net profit is ₹-0 Cr; there is no visible operating business generating cash flows.
• ROCE is 0.00% and sales growth is 0.00%; capital is not deployed productively and there is no revenue engine.
• P/E is 0.00 while book value, debt/equity and promoter holding are all N/A; key valuation, leverage and governance inputs are missing.
• Dividend yield is 0.00%, so total return depends entirely on speculative price appreciation.

AI Analysis

Let me start with what I see. This is a leather-products company, but at the latest quarter it has sales of ₹0 crore and net profit of ₹-0 crore. That is not a functioning business; that is a dormant shell. A P/E of 0.00 is not a sign of value—it is a sign there is no meaningful earnings figure to use. Sales growth is 0.00%, and ROCE is 0.00%; capital employed is producing nothing. The reported profit growth of 22.22% is positive, but with a profit base this tiny, it is almost meaningless. ROE of 2.14% is poor; after inflation and taxes, such a return would struggle to beat a fixed deposit. There is no dividend, so the only reward for holding this stock is someone else paying more for a business that is not producing any visible economic output. The Piotroski F-Score of 5/9 says the financial health is not immediately distressed, but it is not a margin of safety. Book value, debt-equity ratio and promoter holding are all N/A. In Graham's language, an investment must be backed by facts and a margin of safety; here the crucial facts are missing. At ₹18.45, near the ₹17.15 low of its 52-week range, the market price might look 'supported', but without earnings or asset data, price support is only an illusion. I cannot calculate intrinsic value, I cannot measure leverage, and I cannot see who controls the company. This is not the kind of situation Buffett would buy. A possible turnaround is suggested by profit growth, but no sales growth and zero operating returns mean I have no evidence of a genuine operation. I will pass and wait for something I can actually understand.

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