Kemistar Corp. (531163)

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

Key Financials

Strengths

• Strong top-line growth: sales grew 46.92%.
• Latest quarter sales of ₹5 Cr shows the business still has an operating scale.
• Positive book value of ₹13.75 per share gives some asset backing, though P/B is high.
• Pays a small dividend, yield 0.44%.
• ROCE of 3.35% is positive and above the reported ROE of 0.29%.

Concerns

• P/E of 175.81 and P/B of 2.90 are far too high for a business with ROE of 0.29%.
• Profit growth collapsed by 83.33%; latest quarterly net profit is ₹0 Cr.
• Price ₹39.93 is below the stated 52-week range of ₹58-108.99, indicating severe investor disappointment.
• Piotroski F-Score of 4/9 suggests weak financial health; insufficient data on promoter holding and debt/equity adds risk.

AI Analysis

Let's examine Kemistar through Graham's lens. The market cap is ₹43 crore, and the price is ₹39.93. A P/E of 175.81 means I am paying about 176 years of current earnings for this business. Graham would call that speculation. The shareholder return is almost nil: ROE stands at 0.29%, and ROCE at 3.35%. Meanwhile, the latest quarter shows ₹5 crore in sales and net profit of ₹0 crore. Profit growth has fallen 83.33%. Yes, sales grew 46.92%, but increasing revenue without earning money is not a business; it is a treadmill. Book value is ₹13.75, so at ₹39.93 I am paying 2.9 times book for a company generating a 0.29% return on equity. The dividend yield of 0.44% offers negligible compensation. The price is below the stated 52-week range of ₹58-108.99; the market has already voted. A Piotroski F-Score of 4/9 and a meaningless PEG of 3.75—computed on falling profits—do not change my view. I also have no promoter holding data and no debt-equity figure, so the margin of safety cannot be calculated. There is some top-line momentum and a positive book value, but the financial health is weak. I need to see profit margins return and capital employed earn a decent return before I call this an investment. Until then, this looks like a possible turnaround, not a proven one. As Buffett, I would rather wait for a wonderful business at a fair price than pay a high price for a business that earns nothing.

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