Sparc Electrex (531370)

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

Key Financials

Strengths

• Positive book value of ₹10.11 per share provides some asset backing.
• Small absolute market cap of ₹35 Cr leaves room for a large percentage move if operations recover.
• Latest quarterly net loss is only ₹1 Cr, so absolute cash burn appears modest relative to market cap.
• Trading at the top of the 52-week range suggests current market interest, though this is not a fundamental strength.

Concerns

• Sales collapsed by 93.94%, and latest quarter revenue is ₹0 Cr, leaving no visible operating engine.
• Deeply unprofitable: ROE -17.78%, ROCE -7.92%, and profit growth -1,716.67%.
• Piotroski F-Score of 2/9 indicates severe financial weakness.
• At ₹18.14, the stock trades at 1.79 times book value despite negative earnings and no dividend.

AI Analysis

Let me look at Sparc Electrex. The first thing I see is a business with no earnings to speak of—latest quarter sales are ₹0 crore and net profit is minus ₹1 crore. Sales growth has collapsed by 93.94%, and profit growth is down 1,716.67%. You cannot value this on a P/E, because there are no positive earnings to multiply. A Graham disciple would immediately ask: where is the margin of safety? It is not in the balance sheet either. The stock trades at ₹18.14, or 1.79 times book value of ₹10.11 per share. But that book value is being eroded at an ROE of -17.78%, and ROCE is -7.92%. Return on capital is negative, so every rupee retained is destroying value. The Piotroski F-Score is 2/9—this is a company with severe financial stress, not a hidden gem. The 52-week range of ₹3.00 to ₹18.14 tells me this is a speculative micro-cap that has recently grabbed market attention, but attention is not analysis. There is no dividend, no sales, negative profits, and no promoter holding data to reassure me. I don't need to know the exact reason to avoid; the numbers are enough. If this is a turnaround, it is only a hope, not an investment. In Buffett's words, 'turnaround seldom turns.' Without visible revenue, positive margins, or a clear catalyst, I cannot put a fair value on Sparc Electrex. At best, an asset play would require a price well below book, not 79% above it. This is a pass.

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