Scoobee Garments (531234)

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

Key Financials

Strengths

• Book value is positive at ₹1.97 per share, so there is a thin tangible asset base on the balance sheet.
• ROCE is positive at 5.55%, indicating some operating earnings before financing costs.
• The company still generated ₹6 Cr of sales in the latest quarter, so it is a functioning business rather than a dead shell.

Concerns

• Net loss of ₹3 Cr in the latest quarter against sales of ₹6 Cr is severe; annualised, losses could be roughly ₹12 Cr against a ₹97 Cr market cap.
• Sales declined 41.32% and profit growth was -4,350%, showing rapid deterioration in the business.
• P/B of 35.31 with ROE of -73.49% means investors are paying a huge premium for a business that is destroying shareholder equity, and book value per share is only ₹1.97.
• Piotroski F-Score of 3/9 and zero dividend yield offer no financial health or income cushion.

AI Analysis

When I look at Scoobee Garments, I struggle to find a business worth owning at any price. The market tags it at ₹97 crore, yet the latest quarter shows sales of just ₹6 crore and a net loss of ₹3 crore. Annualised, that suggests losses running at roughly half the rate of revenue. Profit growth of -4,350% is not a number I ever like to see; it signals a massive swing into losses, not a temporary wobble. Return on equity is -73.49%, meaning shareholder money is vanishing at an alarming pace. Book value stands at only ₹1.97 per share, so at ₹69.57 I would be paying about 35 times book for a company that is losing money. With negative earnings, the P/E of 0.00 is meaningless. There is no moat. Garments is a low-barrier, intensely competitive industry, and this company has shown no pricing power or demand strength with sales down 41.32%. The Piotroski F-score of 3/9 reinforces my unease. The positive ROCE of 5.55% offers little comfort; it is nowhere near enough to turn the net loss positive. There is no dividend to compensate me while I wait. Promoter holding is not available, so I cannot even judge whether owners' interests are aligned with mine. Benjamin Graham taught me to buy below intrinsic value with a margin of safety. Here, the market price is far above book value, earnings are negative, and growth is pointing the wrong way. This is not a value investment; it is a speculation on a turnaround. For that, I need evidence of stabilisation, improving margins, and honest capital allocation. I see none. In the stock market, you do not have to swing at every pitch. This one I let pass.

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