Crimson Metal (526977)

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

Key Financials

Strengths

• Trades at a 23% discount to book value: P/B 0.77 versus book value ₹12.77.
• ROCE of 8.11% is positive, showing some capital productivity even in a weak period.
• Market cap of ₹4 Cr against annualised sales of roughly ₹8 Cr implies a very low price-to-sales valuation.

Concerns

• P/E of 208.73 and latest quarter net profit of approximately ₹0 mean earnings support is absent.
• Sales down 7.96% and profit down 20% show a deteriorating business trend.
• Piotroski F-score of 3/9 signals weak operational and financial health.
• Key data gaps: debt/equity and promoter holding are N/A, and the 52-week range is inconsistent with the current price.

AI Analysis

At ₹9.84, Crimson Metal is a ₹4 crore micro-cap in a brutally cyclical iron and steel business. I would not call this a wonderful company. Return on equity is just 2.05%, return on capital employed is 8.11%, and both sales and profits are shrinking: sales down 7.96% and profits down 20%. The latest quarter shows ₹2 crore sales and almost zero net profit. There is no economic moat in a commodity product with falling demand. The Piotroski F-score of 3 out of 9 tells me the operating and balance-sheet health is poor, so this is not a candidate for patient compound growth. What makes me pause is the asset side. The stock trades at ₹9.84 against book value of ₹12.77, a 23% discount. That is a Graham-style margin of safety if, and only if, the assets on the books are worth their stated value. I cannot verify that because debt-to-equity is not disclosed, promoter holding is unknown, and the 52-week range of ₹22.41–₹61.35 is inconsistent with today's price of ₹9.84. In a steel cycle, book value can be impaired quickly through inventory writedowns and receivables problems. A P/E of 208.73 is meaningless when earnings are this thin. I would treat Crimson Metal strictly as a possible asset play, not a business I want to own for decades. Shareholders receive no dividend, so the only return comes from asset realisation or a re-rating. Without audited detail on borrowings, working capital and promoter intent, the discount to book could easily be a value trap. I would demand a much deeper investigation before committing even a small amount.

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