Choksi Laborator (526546)

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

Key Financials

Strengths

• Revenue is still holding with 4.24% sales growth, so the business is not shrinking at the top line.
• Book value of ₹38.13 provides some asset backing at P/B of 1.62.
• ROCE of 9.20% is modestly above ROE, suggesting capital deployment has not entirely stalled.
• Healthcare service provider category gives the company a defined industry with potential demand.

Concerns

• Profit growth is down 63.64%, and the latest quarter reported net profit of ₹0 crore, showing severe earnings erosion.
• P/E of 48.60 and PEG of 11.46 are far too rich for a company with collapsing profitability.
• Piotroski F-Score of 4/9 points to weak financial health and rising risk.
• Zero dividend yield and a price below the 52-week range indicate extreme market skepticism.

AI Analysis

Looking at Choksi Laborator, I am reminded of the importance of a margin of safety. The market cap is only ₹43 crore, and the shares trade at ₹61.93—well below the 52-week low of ₹81.85 and more than 70% off the high of ₹236.70. That looks like deep distress, not necessarily deep value. The business earns only 8.07% on equity and 9.20% on capital employed; these are not catastrophic, but they are far from the consistent high returns I seek. A P/E of 48.60 makes little sense when profit growth has collapsed by 63.64%, and the PEG ratio of 11.46 tells me the market is pricing in miracles. The latest quarter shows sales of ₹11 crore but zero net profit, so the earnings power is currently not visible. Sales growth is a modest 4.24%, hardly evidence of a strong franchise. There is no dividend to cushion the wait. The Piotroski score of 4 out of 9 suggests weak overall financial health, and with debt/equity not disclosed, I cannot credit management with a clean balance sheet. Book value of ₹38.13 gives a P/B of 1.62, but a subpar ROE means the book value is not generating much wealth for shareholders. In Graham's terms, I want a stable earnings record, financial strength, and a reasonable price. Choksi is small, its profit has vanished, and its trading range shows severe volatility. This is not an investment; it is at best a speculation on a turnaround. The price may look tempting after a fall, but without evidence of recovering margins, improving returns, and honest capital allocation, I would rather watch from the sidelines. Numbers speak; these numbers tell me to wait.

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