Zenlabs Ethica (530697)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹38.16 |
| Market Cap | ₹24.84 Cr |
| P/E Ratio | 59.39 |
| ROCE | 5.69% |
| ROE | -17.99% |
| Dividend Yield | 0% |
| Profit Growth | -22.22% |
| Debt/Equity | — |
| Sales Growth | -2.28% |
| 52-Week Range | ₹16.5 — ₹38.16 |
| Sector | Commercial Services & Supplies |
| Book Value | ₹16.14 |
Strengths
- Annualized sales of ~₹48 Cr against ₹25 Cr market cap implies a low price-to-sales ratio
- ROCE of 5.69% shows positive operating capital returns despite negative ROE
- Book value of ₹16.14 provides a reference point for asset downside
- Price near 52-week high of ₹38.16 indicates market optimism
Concerns
- ROE of -17.99% and latest quarter net loss of ₹2 Cr indicate deep unprofitability
- Sales growth -2.28% and profit growth -22.22% show deteriorating operations
- Piotroski F-Score 3/9 suggests weak financial health
- Zero dividend and undisclosed promoter holding reduce transparency
AI Analysis
At 38 rupees, this is a tiny 25 crore market cap company. Graham would tell me to look at the numbers coldly. Book value is 16.14 rupees, so I am paying 2.36 times the net assets. But what are those assets earning? The return on equity is a negative 18 percent, and the latest quarter showed a net loss of 2 crore on sales of 12 crore. That is no margin of safety. The P/E of 59 is meaningless when profits are falling by 22 percent and sales are shrinking by 2.28 percent. The Piotroski score of 3 out of 9 reinforces a weak balance sheet. There is a glimmer: ROCE is 5.69 percent, so operating capital isn't totally dead, and annualized sales of roughly 48 crore against a 25 crore market cap gives a price-to-sales below 0.7. But that only helps if management can turn those sales into profits. The stock has doubled from its 52-week low of 16.50; the market is anticipating a recovery that hasn't shown up in earnings. As an investor, I don't bet on hope. I need evidence. Without promoter holding data or debt details, I can't trust the stewardship. This is a possible turnaround, but only for a speculator, not a value investor. I would wait on the sidelines until profitability returns and the Piotroski score improves.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer