Kati patang Life (531126)

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

Key Financials

Strengths

• The book value of ₹2.86 per share gives some per-share asset backing, though the market price is well above it.
• The latest quarterly revenue of ₹3 crore shows the business is still operating and not a shell.
• The company is listed on NSE/BSE, so pricing and volume information is publicly available.
• A small market cap of ₹21 crore could make the company a niche revival or restructuring candidate if operations stabilise.

Concerns

• Latest quarter net loss of ₹3 crore equals the entire quarterly revenue of ₹3 crore, implying a deeply negative net margin.
• Sales growth is -40.09% and profit growth is -149.56%, indicating serious fundamental deterioration.
• ROE of -8.57%, ROCE of -22.08%, and Piotroski F-Score of 2/9 point to capital destruction and financial distress.
• Current price of ₹6.11 is below the stated 52-week range of ₹14.84-₹27.00, a red flag around either data quality or severe loss of market confidence; promoter holding and debt/equity are also undisclosed.

AI Analysis

Let me start with a basic test: can this company earn more than its cost of capital? The figures say no. Kati patang Life has a market cap of ₹21 crore, yet the latest quarter shows sales of ₹3 crore and a net loss of ₹3 crore — it is losing one rupee per rupee of revenue. Sales are down over 40%, and profit growth has collapsed by nearly 150%. Return on equity is negative 8.57%, and return on capital employed is negative 22.08%. This is not a temporary blip; it is a business that is shrinking and burning value. The Piotroski F-Score of 2 out of 9 is another warning sign. Graham would tell me to focus on facts, not hopes. The facts here: book value is ₹2.86 per share, but the market price is ₹6.11. I am being asked to pay 2.14 times book for a company with negative earnings, no dividend, and falling revenue. Promoter holding is not available, debt/equity is not available, and the 52-week range of ₹14.84 to ₹27.00 is above the current price — an inconsistency that makes me even more cautious. Perhaps this is a turnaround candidate; breweries and distilleries can be good businesses when they are run well. But a potential turnaround is an idea, not an investment. I need evidence of stabilised sales, improving margins, positive cash flow, and honest management before I can value it. In the meantime, buying at ₹6.11 offers little margin of safety. I would rather keep my capital and wait. The next few quarters may tell whether this is a value trap or a true revival story. Today, the arithmetic does not work.

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